Mediterranean Central Bank governors discuss post-Covid-19 recovery

Central Bank Governors from 10 Mediterranean countries making up the Western Mediterranean Dialogue should extend their role by the inclusion of finance ministers in future intergovernmental meetings, Central Bank of Malta Governor Prof. Edward Scicluna said.

He was referring to the various challenges facing the Mediterranean region, placing particular emphasis on the importance of climate change being factored into the functions of the central banks and for financial inclusion to ensure equitable access to financial services across the populations of the countries involved.

“Central banks have a limited role, to some extent, in helping governments to deal with climate change and social inclusion issues. However, they have expertise and resources and can play an important role in finding solutions,” he said.

He also referred to the importance of cooperation across these stakeholders when it comes to lobbying for attracting funds from high-level institutions such as development banks, including the World Bank, the EBRD, the EIB and the IMF, that will be required to ensure post-Covid recovery in the region.

Prof. Scicluna was speaking at a Conference of the Governors of the Mediterranean Central Banks entitled Central Banks at the frontline of the Covid-19 Crisis: Weathering the storm, spurring the recovery. The online conference was organised by Banco de España, the Central Bank of Tunisia, the OECD and the European Institute of the Mediterranean.

He was one of a panel of speakers who discussed central banks’ roadmap to promote a sustainable post-Covid-19 recovery in the region. Central banks are able to contribute towards a sustainable, inclusive, green and digital agenda in their respective countries. While they address macroeconomic and financial stabilisation needs, their policies will also accelerate the sustainability transitions by enhancing green finance and steering credit towards sustainable investments.

The keynote speech was delivered by Fabio Panetta, an Executive Board member of the European Central Bank, who gave an overview of the monetary policies across the Mediterranean region.

The European Central Bankers at the conference were from Spain, Portugal, Italy, Greece and Malta. The Central Bankers from North Africa included Egypt, Libya, Tunisia, Algeria and Morocco. High officials from the OECD, the Union of the Mediterranean and the European Institute of the Mediterranean also spoke during the conference.