G20 Summit final communique
LONDON (Reuters) - Leaders of the G20 largest developed and emerging economies agreed on Thursday to a $1.1 trillion program to restore global growth and rebuild a financial system, ravaged by the worst financial crisis since the 1930s.
Here are the key points in the final G20 communique.
-- "To treble resources available to the IMF to $750 billion, to support a new SDR allocation of $250 billion, to support at least $100 billion of additional lending by the MDBs (multilateral development banks), to ensure $250 billion of support for trade finance, and to use the additional resources from agreed IMF gold sales for concessional finance for the poorest countries."
That constitutes "an additional $1.1 trillion program of support to restore credit, growth and jobs in the world economy."
-- The measures taken will "by the end of next year, amount to $5 trillion, raise output by 4 percent, and accelerate the transition to a green economy."
-- "Central banks have pledged to maintain expansionary policies for as long as needed and to use the full range of monetary policy instruments, including unconventional instruments, consistent with price stability."
-- To put in place "credible exit strategies from the measures that need to be taken now to support the financial sector and restore global demand ... thereby reducing the scale of the fiscal consolidation necessary over the longer term."
-- "To establish a new Financial Stability Board (FSB) with a strengthened mandate, as a successor to the Financial Stability Forum (FSF), including all G20 countries, FSF members, Spain, and the European Commission.
"The FSB should collaborate with the IMF to provide early warning of macroeconomic and financial risks and the actions needed to address them."
-- "To extend regulation and oversight to all systemically important financial institutions, instruments and markets. This will include, for the first time, systemically important hedge funds."
-- "To endorse and implement the FSF's tough new principles on pay and compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms."
-- "To take action against non-cooperative jurisdictions, including tax havens. We stand ready to deploy sanctions to protect our public finances and financial systems ... We note that the OECD has today published a list of countries assessed by the Global Forum against the international standard for exchange of tax information."
-- "To extend regulatory oversight and registration to Credit Rating Agencies to ensure they meet the international code of good practice, particularly to prevent unacceptable conflicts of interest."
-- "We reaffirm the commitment made in Washington: to refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organization (WTO) inconsistent measures to stimulate exports.
"We will minimize any negative impact on trade and investment of our domestic policy actions including fiscal policy and action in support of the financial sector. We will not retreat into financial protectionism, particularly measures that constrain worldwide capital flows, especially to developing countries."
- Tweet this
- Share this
- Digg this