FX NEWS

The SAARC countries are rolling out their stimulus emergency packages to deal with the impact of Coronavirus. These investments are being made to boost the finances for the public sector, buffer most private businesses, and help their GDPs grow. This is being done to deal with the economic crisis every country is dealing with.

COVID-19 has become a significant issue for people worldwide, with more than 1.8 billion people’s lives being affected. The World Bank recently gave a warning to the South Asian countries to be ready for the worst economic performance that they would have performed in the last 40 years. This has created a lot of havoc amongst the governments and the people of the respective countries. The bank advised the governments to pull up their socks and provide aid to the public health-care emergencies, prevent their people from this pandemic, especially those who fall below the poverty line and are most vulnerable.

The central bank cuts down its key interest rates by about 75 basis points to make loans and EMIs cheaper. However, they have demanded from the government to pay for the rest of the expenses. Many countries have come up with a moratorium to support those who are currently paying EMIs at
higher interest rates. Also, they are taking a step forward to help people by providing them with liquid cash. With governments suspending insolvency and other bankruptcy codes, it would be interesting to see how they deal with COVID-19.