Luxembourg Withstanding Economic Crisis

11.07.2012 Luxembourg confirms its status of international financial center and demonstrates resilience in the conditions of economic financial crisis, that International Monetary Fund notes.

The IMF also reported that, in spite of the fact that the level of investment flows in the country has decreased in 2011, and mainly because of the instability of the single currency, but already at the beginning of 2012 this sector in the economy of Luxembourg recovered, and assets reached almost $ 2.5 billion. The Bank's assets though reduced, but the IMF says that the banks located in Luxembourg, remain profitable and liquid. «Banks' exposures to distressed sovereigns in the European periphery are generally contained, but cross-border exposures remain high. Cross-border, mainly intragroup, exposures still account for about three quarters of bank loans," the report says.

The risks for the country and its financial sector come, first of all, from a lack of external demand. Economic activity will reduce in the future, together with the expected soon growth, which is forecasted in 2012, will be 0.5%.

Expert’s opinion

Despite all the debts, loans and financial crises tiny Luxembourg continues if not to grow, but at least and not to fall heavily down. The stability of the now is one of the most important advantages of any country.

Almost all of the largest banks of the world have their representative offices in the Duchy, thus emphasizing that they trust the country's economy.

Over the last year the Bank of Latvia ABLV Bank decided to expand its geographical presence and goes on the financial field of Luxembourg. And this choice is not accidental, the confidentiality and security of Bank deposits at the highest level».

On the basis: http://www.tax-news.com

Lomakina Irina ( the director of Moscow office of Honest & Bright )