Moody's has rated India’s banking sector as stable to positive. Moody's said that while Indian banks have traditionally focused on industrial credits, the recent shift to loans has yet to complete a full credit cycle test. The report further cautioned that the shift towards retail loans and their performance under unfavourable conditions would be a decisive ratings driver for the Indian banking sector. Moody's also said that Indian banks suffer from an undiversified earnings profile, geared largely towards interest income.
Thailand's caretaker deputy prime minister Somkid Jatusripitak said the country could see two years of budget deficits. He said that in the current situation, a deficit may be necessary for economic growth. Thailand reported a balanced budget for the fiscal year 2004/05.
The price of bananas halved last month, according to Ecuadorian largest producers Los Rios and Guayas. As of 2003 the two firms’ annual banana exports were over $1 billion, according to the central bank. Ecuador’s banana producers have asked the foreign ministry to negotiate a free trade agreement with China, similar to Honduras’. The Ministry for agriculture expects that 13% of banana exports will be delivered to the Chinese market.
Germany’s ambassador in Romania, Wilfrid Gruber, said today that "it is too early to say that the struggle against corruption is an irreversible process in Romania." Noting progress in this area by Romania’s government, he added that corruption is still endemic in health, education, and many other areas. "This is a very important thing. It is in the interest of the Romanians, for this country's stability and for people to trust the state institutions."