ID :
209089
Fri, 09/23/2011 - 17:19
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Shortlink :
https://oananews.org//node/209089
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G-20 vows coordinated response to global financial challenges
WASHINGTON, Sept. 23 Kyodo - Financial chiefs from the Group of 20 advanced and emerging economies on Thursday pledged a strong, coordinated response to the eurozone debt crisis and other fiscal challenges, while stressing the need to support growth and promote fiscal consolidation.
''We are taking strong actions to maintain financial stability, restore confidence and support growth,'' the G-20 finance ministers and central bank governors said in a communique released after their dinner meeting.
''We will ensure that banks are adequately capitalized and have sufficient access to funding to deal with current risks,'' they also said, indicating the need to boost capital of European banks and inject public funds, if necessary.
At the outset of the G-20 meeting, some participants questioned the credibility of the Greece rescue plan agreed by eurozone leaders in July, Japanese Finance Minister Jun Azumi told reporters.
After European members explained that the plan is before parliament and will likely get approval in October for implementation, however, all participants appeared to understand the situation, he said.
The G-20 also expressed hope for the plan's passage, saying in the statement, ''The euro area will have implemented by the time of our next meeting the necessary actions to increase the flexibility of the European Financial Stability Facility and to maximize its impact in order to address contagion.'' The G-20 financial leaders are scheduled to meet in Paris in mid-October.
''In the first place, this is an issue that European countries should resolve by themselves,'' Azumi told reporters after the meeting. European participants also said they are at the epicenter of the current financial crisis, a senior Japanese official said.
During the G-20 talks which were held on the fringes of annual meetings of the International Monetary Fund and the World Bank, Bank of Japan Governor Masaaki Shirakawa also said it was important for eurozone countries to implement a rescue package for Greece agreed in July.
On the exchange rate, the statement said, ''We reiterated that excessive volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.''
The appreciation of the yen against major currencies continues, with the euro briefly touching a fresh 10-year low of 102.22 yen against the Japanese currency in New York on Thursday.
Shirakawa told the participants that growing uncertainty about the global economy was behind the recent appreciation of the yen, with investors opting for the Japanese currency as a safe-haven asset.
Some analysts speculated emerging economies such as China and Brazil might offer support for eurozone economies in the form of buying European government bonds to help these countries out of a further crisis.
Finance ministers and central bank governors from Brazil, China, India, Russia and South Africa or BRICS issued a statement shortly before the G-20 meeting, saying they are ready to offer support. But the argument at the latest G-20 meeting apparently did not go that far.
The G-20 aims to craft an action plan of coordinated policies for implementing credible fiscal consolidation plans, and ensuring strong, sustainable and balanced growth at the G-20 Cannes summit in November.
On Friday, the G-20 members will discuss development issues such as how to finance infrastructure and food security in emerging economies.
The G-20 groups Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United States and the European Union.
''We are taking strong actions to maintain financial stability, restore confidence and support growth,'' the G-20 finance ministers and central bank governors said in a communique released after their dinner meeting.
''We will ensure that banks are adequately capitalized and have sufficient access to funding to deal with current risks,'' they also said, indicating the need to boost capital of European banks and inject public funds, if necessary.
At the outset of the G-20 meeting, some participants questioned the credibility of the Greece rescue plan agreed by eurozone leaders in July, Japanese Finance Minister Jun Azumi told reporters.
After European members explained that the plan is before parliament and will likely get approval in October for implementation, however, all participants appeared to understand the situation, he said.
The G-20 also expressed hope for the plan's passage, saying in the statement, ''The euro area will have implemented by the time of our next meeting the necessary actions to increase the flexibility of the European Financial Stability Facility and to maximize its impact in order to address contagion.'' The G-20 financial leaders are scheduled to meet in Paris in mid-October.
''In the first place, this is an issue that European countries should resolve by themselves,'' Azumi told reporters after the meeting. European participants also said they are at the epicenter of the current financial crisis, a senior Japanese official said.
During the G-20 talks which were held on the fringes of annual meetings of the International Monetary Fund and the World Bank, Bank of Japan Governor Masaaki Shirakawa also said it was important for eurozone countries to implement a rescue package for Greece agreed in July.
On the exchange rate, the statement said, ''We reiterated that excessive volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.''
The appreciation of the yen against major currencies continues, with the euro briefly touching a fresh 10-year low of 102.22 yen against the Japanese currency in New York on Thursday.
Shirakawa told the participants that growing uncertainty about the global economy was behind the recent appreciation of the yen, with investors opting for the Japanese currency as a safe-haven asset.
Some analysts speculated emerging economies such as China and Brazil might offer support for eurozone economies in the form of buying European government bonds to help these countries out of a further crisis.
Finance ministers and central bank governors from Brazil, China, India, Russia and South Africa or BRICS issued a statement shortly before the G-20 meeting, saying they are ready to offer support. But the argument at the latest G-20 meeting apparently did not go that far.
The G-20 aims to craft an action plan of coordinated policies for implementing credible fiscal consolidation plans, and ensuring strong, sustainable and balanced growth at the G-20 Cannes summit in November.
On Friday, the G-20 members will discuss development issues such as how to finance infrastructure and food security in emerging economies.
The G-20 groups Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United States and the European Union.
