All policies will be used to tackle the deepest global downturn in generations, it says
Finance ministers and central bank governors wait for the start of the G20 Finance Ministers meeting at a hotel, near Horsham, in southern England March 14, 2009. -- PHOTO: REUTERS
Horsham (England) - G-20 finance ministers vowed yesterday to take 'whatever action is necessary' to pull the world economy out of recession.
Main points from the meeting
Main points from a meeting of the finance ministers of the Group of 20 richest and developing countries on Saturday ahead of a summit of G20 leaders in London on April 2:
- Agreed to take decisive and coordinated action to boost demand and jobs - Key priority is to restore lending by tackling problems in financial system
Herewith the final statement issued by finance ministers of the Group of 20 richest and developing countries after talks on Saturday ahead of a summit of G20 leaders in London on April 2:
PREAMBLE: 'We, the G20 finance ministers and central bank governors, met today to prepare for the leaders' London Summit. We agreed further action to restore global growth and support lending, and reforms to strengthen the global financial system.
Without providing many specific numbers, finance ministers and central bankers from the Group of 20 nations said all policies - fiscal and monetary, conventional and unconventional - will be used to tackle the deepest global downturn in generations.
'Our key priority now is to restore lending by tackling, where needed, problems in the financial system head on, through continued liquidity support, bank recapitalisation and dealing with impaired assets,' the G-20 statement said.
'We ... are prepared to take whatever action is necessary until growth is restored.'
The finance chiefs, meeting in southern England ahead of the G-20 leaders' meeting on April 2, also said central banks will maintain expansionary policies as long as is needed and that governments' fiscal commitments already pledged should be implemented without delay.
They vowed to fight all forms of protectionism and maintain open trade and investment.
Multilateral banks should have 'all the capital they need", starting with a 'substantial' capital increase for the Asian Development Bank, they added.
Separately, Britain's Prime Minister Gordon Brown, who will host the G-20 summit on April 2, said 'massive change' was about to take place in financial market regulation, notably supervision of hedge funds.
The statement issued by the ministers said that hedge funds should be registered and disclose information needed to keep tabs on risk.
The ministers essentially papered over differences as to the emphasis and urgency to be given to anti-recession spending by government on the one hand and regulation on the other.
