JAPAN: The Group of 24 developing nations says immediate euro zone action is needed to prevent impact on growth in emerging markets

Record ID: 466677

  • Title: JAPAN: The Group of 24 developing nations says immediate euro zone action is needed to prevent impact on growth in emerging markets
  • Date: 12th October 2012
  • Summary: TOKYO, JAPAN (OCTOBER 11, 2012) (REUTERS) 'GROUP OF 24' (G24) BOARD MEMBERS ARRIVING ON STAGE FOR NEWS CONFERENCE SIGN READING: "2012 ANNUAL MEETINGS, INTERNATIONAL MONETARY FUND, WORLD BANK, TOKYO" CHAIRMAN OF G24 AND INDIAN FINANCE MINISTER, PALANIAPPAN CHIDAMBARAM SITTING DOWN ON STAGE FOR NEWS CONFERENCE NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (English) CHAIRMAN OF GROUP OF TWENTY-FOUR AND INDIAN FINANCE MINISTER, PALANIAPPAN CHIDAMBARAM, SAYING: "We remain concerned about the fragility of the recovery. Recent policy actions by the ECB (European Central Bank) and periphery have reduced threats from the euro area but downside risks remain high." JOURNALIST LISTENING TO NEWS CONFERENCE MORE OF NEWS CONFERENCE UNDERWAY (SOUNDBITE) (English) CHAIRMAN OF G24 AND INDIAN FINANCE MINISTER, PALANIAPPAN CHIDAMBARAM, SAYING: "Subdued global growth has adverse impact on growth in many emerging markets and developing countries. We believe that immediate and concerted implementation of policy commitments are needed to restore confidence and boost growth." JOURNALISTS LISTENING TO NEWS CONFERENCE G24 BOARD MEMBERS SITTING ON STAGE MORE OF NEWS CONFERENCE UNDERWAY (SOUNDBITE) (English) CHAIRMAN OF G24 AND INDIAN FINANCE MINISTER, PALANIAPPAN CHIDAMBARAM, SAYING: "Six months later the situation doesn't seem any better. In fact, it may have become slightly worse. So it's for Europe, the euro zone, to address the concerns of the developing countries, the middle-income countries and the small and vulnerable countries, because what happens in the euro zone does impact the rest of the world." MORE OF JOURNALISTS (SOUNDBITE) (English) CHAIRMAN OF G24 AND INDIAN FINANCE MINISTER, PALANIAPPAN CHIDAMBARAM, SAYING: "We take talk of a downgrade seriously and we will engage with rating agencies and convince them that India does not deserve a downgrade, and in terms of growth and the potential for growth, in India, is way above most countries in the world." VARIOUS OF G24 BOARD LEAVING NEWS CONFERENCE
  • Embargoed: 27th October 2012 13:00
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: International Relations,Economic News,Politics
  • Reuters ID: LVAGM0CHKDG6IS87Y3XGRMN4NAK
  • Story Text: The Group of 24 developing nations called for immediate euro zone action on Thursday (October 11), saying the bloc's lack of policy implementation presented a risk to growth in emerging markets.
    The group, chaired by Indian Finance Minister Palaniappan Chidambaram and including members from Sri Lanka to South Africa, met in Tokyo on the sidelines of this week's bi-annual International Monetary Fund and World Bank summit.
    "We remain concerned about the fragility of the recovery. Recent policy actions by the ECB and periphery have reduced threats from the euro area but downside risks remain high. Subdued global growth has adverse impact on growth in many emerging markets and developing countries. We believe that immediate and concerted implementation of policy commitments are needed to restore confidence and boost growth," Chidambaram said in a statement for the group.
    Emerging economies are concerned that a slowdown in capital flows triggered by the euro zone is having a knock-on effect on growth across the developing world.
    "Six months later the situation doesn't seem any better. In fact, it may have become slightly worse. So it's for Europe, the euro zone, to address the concerns of the developing countries, the middle income countries and the small and vulnerable countries, because what happens in the euro zone does impact the rest of the world," Chidambaram added.
    When asked about recent warnings from rating agency Standard & Poor's that India still faced a one-in-three chance of a credit rating downgrade within the next 24 months, he said his country should not be in that situation.
    "We take talk of a downgrade seriously and we will engage with rating agencies and convince them that India does not deserve a downgrade, and in terms of growth and the potential for growth in India is way above most countries in the world," Chidambaram said.
    The joint IMF and World Bank meetings kick off in Tokyo on Friday (October 12) and run until October 14.
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