G-20 finance meeting ends with emphasis on fiscal soundness
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(Photo: Kookje Newspaper)
A photo session at the G-20 Finance Ministers and Central Bank Governors Meeting on Friday (Jun. 4) at the Nurimaru APEC House in Busan.
A photo session at the G-20 Finance Ministers and Central Bank Governors Meeting on Friday (Jun. 4) at the Nurimaru APEC House in Busan.
The G-20 Finance Ministers and Central Bank Governors Meeting in Busan held on Jun. 4 and 5 for the first time in Korea at the Westin Chosun Hotel in Haeundae, Busan concluded with a communiqué that underlined the importance of fiscal soundness.
A total of 40 financial ministers from G-20 nations and governors from central banks participated, as well as governors of international organizations including the International Monetary Fund (IMF), World Bank (WB), Financial Stability Board (FSB) and Organization for Economic Co-operation and Development (OECD).
The meeting mostly focused on reviewing progress on the agenda items for the coming G-20 Summits scheduled for this year, the first in Toronto, Canada, in late June and the other in Seoul in November.
Reflecting on the aftershocks of the financial market that followed the financial crisis in Europe, the latest meeting stressed international cooperation to enhance fiscal soundness. This came with an understanding that even though the global economy is recovering at a faster-than-expected pace, the variability in the market and other challenging factors still remains.
All the participants agreed on the importance of financial restructuring and agreed in principle on measures that are tailored, differentiated, credible and growth-friendly.
For countries in dire financial straits, the leaders urged to accelerate the pace of reform and at the same time make efforts to expand their domestic markets, maintain macroeconomic stability and, all the while, pursue economic growth. The financial ministers at the meeting also prepared various alternatives for a strong, sustainable and balanced cooperation between countries which will be further discussed at the G-20 meeting in Canada.
In relation to global financial safety nets suggested by Korea, the financial ministers recognized the need for local, regional and multilateral efforts to cope with the changes in capital and preemptively contain possible crises outbreaks .
The financial leaders agreed on five factors to be considered for shouldering burdens, namely a global bank tax and the need to: protect taxpayers, reduce risk in financial systems, supply stable credit regardless of financial situation, consider the situation and choice made by each and every nation, and prepare a basis for fair competition.
Meanwhile, Korea’s policy of sharing its experience of successful industrialization was also well received at the meeting. The next G-20 Financial Ministers and Central Governors meeting will be held in the Korean city of Gyeongju on October 22 and 23.The source of news : Korea.net
