India has been very resilient to Brexit: WB chief

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SME Times News Bureau | 01 Jul, 2016
World Bank President Jim Yong Kim in New Delhi on Thursday said that though ample uncertainties remain around analysing the effects of Brexit or Britain's exit from European Union), India has so far been quite resilient to it.

"Post Brexit I think there is still a period of great uncertainty because we are not quiet sure what is going to happen next. India again has been very resilient to what's happening in Brexit," Kim told reporters on the sidelines of the press briefing about his India visit during which he met Prime Minister Narendra Modi and Finance Minister Arun Jaitley.

The World Bank chief however cautioned that access to capital for developing economies may become difficult and continued uncertainties post Brexit may affect India as well.

"If there are continued uncertainties... if there are more events that create more uncertainty, then certainly everyone would be affected, including India," he said.

"Even though many of those questions are up in the air there has been an impact. And the impact is very clear because clearly uncertainty is something that markets don't like. One of the impacts that we see is that money has moved to safe heavens like gold, US treasuries, Japanese yen. What that means for the developing countries is that access to capital can become really difficult," Kim added.

"It remains to be see if Britain will remain part of the common market. All these questions are still up in the air. Where this will end up, I am not sure," he said.

Kim said that however, he is a very strong believer in multilateralism and European Union is one of the greatest examples of attempted multilateralism.

"I believe the key to peace and prosperity, shared prosperity, lies in strengthening multilateralism and not move away from it. That's my very strong belief. What I hope is that European Union will come out of this stronger," he said.