Kochi, Sunday 09 November 2008: Finance Minister Thomas Isaac has said that the Centre should convene a meeting of State governments to discuss ways to deal with the global financial crisis. Banks are reluctant to lend despite the RBI measures to reduce the cash reserve ratio and statutory liquidity ratio. The minister was addressing the national convention of women officers of the All India Bank Officers’ Confederation.

Private investors are unwilling to invest under the present economic conditions. Hence, it is the right time for the government to make investment in infrastructure projects. There are many projects such as the Kochi Metro rail, railway overbridges and fishing harbours which require investment.

The global financial sector crisis is no more a crisis confined to that area. It has reflected in layoffs. Major economies are heading towards a zero growth rate. The next year could be worse, he said. Care should be taken to ensure that the burden is not passed on to farmers, workers and the middle class.

The resolution adopted by the National Executive Committee meeting of the confederation said that the entire banking industry should be brought under the public sector through nationalisation in logical conclusion to the steps taken in 1969 and 1980. The committee said it was the public sector banks and insurance companies that insulated the Indian economy from the global turmoil.