G20 Summit draft communique
LONDON (Reuters) - G20 leaders of the world's largest developed and emerging economies are due to agree on Thursday to a major plan for restoring global growth and rebuilding a financial system, ravaged by the worst financial crisis since the 1930s.
Here are key points in the G20 communique draft, a copy of which was obtained by Reuters from delegation officials attending the summit.
1. Steps for restoring growth and jobs
- Fiscal Measures: The draft noted that "an unprecedented and concerted fiscal expansion" is underway but made no specific commitments for extra stimulus, beyond saying: "We are committed to deliver the scale of sustained effort necessary to restore growth."
The U.S., Britain and Japan had sought more government spending.
- Monetary and financial: Noted central banks have cut rate cuts aggressively, have pledged to undertake unconventional measures as long as needed, and that governments are supporting their banking systems -- all of which will help support a return to growth. "We are committed to take whatever action is necessary to achieve this outcome and we call on the IMF to assess the actions taken and the actions required."
- FX policies: "We will conduct all our economic policies cooperatively and responsibly with regard to the impact on other countries and will refrain from competitive devaluation of our currencies." They also committed to "candid, even-handed and independent" assessments by the IMF on these matters.
- Exit strategies: wary of inflationary concerns, they pledged to put in place credible exit strategies from the fiscal measures and support for the banking and financial sector.
2. Financial regulation: Continued...
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