Basle 2 'Developing countries fear poor loan loss'

GUATEMALA - The Basle 2 regulations, requiring banks in industrialised countries to make increased provisions for loans to their counterparts in developing countries, would make funds more expensive and scarce for those countries classed as the biggest risk, said Willy Zapata, the former president of Guatemala's central bank.

Mr Zapata, who also once chaired the Group of 24, which represents the developing world in economic matters, said bank lending would switch to more dependable countries such

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