Greece's economy contracted by 5.3 percent in the first quarter of 2013 in an annual comparison, flash estimates from the state statistics agency showed on Wednesday. The equivalent contraction in the first quarter of 2012 had been 6.7 percent of output, the agency said. The Greek finance ministry forecasts a contraction of 4.3 percent this year before the economy limps back into growth in 2014, at a rate of at least 0.2 percent of output. Greece's economy shrank by 6.4 percent in 2012. Overall, it has contracted by more than a fifth since 2008.

GREATER NOIDA, India (Reuters) - A global liquidity infusion risks leading to asset bubbles, China, Japan, South Korea along with a host of Southeast Asian nations said on Friday. Many emerging nations are cautious about easier monetary policy in advanced economies, including Japan, fearing it may result in disruptive bubbles and currency appreciation, and make their exports less competitive.

MEXICO CITY - Mexico's government proposed a sweeping overhaul of the banking sector Wednesday to make credit cheaper and more available, a move desperately needed in a country where bank loans represent less than 20 per cent of GDP — one-tenth the level seen in the United States. The plan would encourage banks to compete and lend more, create incentives for mid-size companies to list shares on the stock market, and modify bankruptcy laws to make it easier for lenders to seize debtors' assets.

By Michael Winfrey PRAGUE (Reuters) - Policymakers in emerging Europe should help banks resolve bad loans and find more local sources of funding to avoid the cycle of boom and bust fanned by an ownership model dominated by foreign lenders, the IMF said on Friday. In a report on the banking sector in the European Union's eastern wing, the International Monetary Fund said non-performing loans would continue to rise in some states, impeding credit flows and denting profits in western banks operating there.