G20-DECLARATION 2 LST

The declaration did not refer to the flexibility
in exchange rate policies in the context of China's recent
announcements on Yuan.
Committing themselves to continue with coordinated
actions to bolster economic growth, the G-20 nations quoted
IMF and World Bank estimate that if a more ambitious path of
reforms is undertaken, global output would be higher by almost
4 trillion dollars, tens of millions of jobs would be created
and more people would be lifted out of poverty.
Calling for prudential norms for financial sectors,
the declaration said implementation of the Basel norms will
raise the amount and improve the quality of capital.
"This will enable banks to withstand -- without
extraordinary government support -- stresses of a magnitude
associated with the recent financial crisis," the bloc said.
The nations said that agreement on new capital norms
will be reached by the next G-20 meeting in Seoul in November.
"We agreed that all members will adopt the new
standards and these will be phased in over a time frame that
is consistent with sustained recovery and limits market
disruption, with the aim of implementation by end-2012..." the
declaration said.
With many blaming relaxed norms for hedge funds and
credit rating agencies for the global financial downturn, the
G-20 nations agreed to a strong regulatory oversight of these
funds and agencies and over-the-counter derivatives.
They also emphasised the importance of high quality
global accounting standards and sound compensation policies
for high ranking officials of the financial sector.
These nations said central banks monetary policies
will continue to achieve price stability which would
contribute to the recovery process.
Asserting that corruption threatens the integrity of
markets, the bloc agree to set up a working group to make
recommendations on how to fight this menace.
The bloc also talked of addressing the issue of tax
havens, money laundering and terror financing.
"We are addressing non-cooperative jurisdictions,
based on comprehensive, consistent and transparent assessment
with respect to tax havens, the fight against money laundering
and terrorist financing," the declaration said.
While endorsing the reforms being undertaken in the
World Bank to shift 4.59 per cent voting power to developing
countries, the G-20 nations resolved to carry out similar
reforms in IMF.
The G-20 nations also took note of the recent oil
spill in the Gulf of Mexico and called for sharing best
practices to protect the marine environment, prevent accidents
related to offshore exploration.
The declaration did not refer to the foreign exchange
policy of governments in the context of recent Chinese
announcements on Yuan. PTI VSC
MRD


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