BRAZIL: G20 agrees on need for coordinated measures to tackle global financial crisis

Record ID: 784558

  • Title: BRAZIL: G20 agrees on need for coordinated measures to tackle global financial crisis
  • Date: 10th November 2008
  • Summary: (BN15) SAO PAULO, BRAZIL (NOVEMBER 09, 2008) (REUTERS) (SOUNDBITE) (English) INTERNATIONAL MONETARY FUND'S MANAGING DIRECTOR, DOMINIQUE STRAUSS-KAHN, SAYING: "I am very happy to see, for instance, that the Chinese just announced a big support on the fiscal side, which is exactly in line with what we (IMF) asked for almost two months and what the G20 communique is explaining." CAMERAMEN AND REPORTERS IN NEWS CONFERENCE (SOUNDBITE) (English) INTERNATIONAL MONETARY FUND'S MANAGING DIRECTOR, DOMINIQUE STRAUSS-KAHN, SAYING: "I'm rather happy with this (G20) communique, which probably will be a basis for the discussions in Washington next week, but of course, when you have heads of state and governors around the table, you never know what will be the outcome, so I guess they will have more ideas and willingness for action than what this communique has only." INTERNATIONAL MONETARY FUND'S MANAGING DIRECTOR, DOMINIQUE STRAUSS-KAHN, LEAVING NEWS CONFERENCE (BN17) SAO PAULO, BRAZIL (NOVEMBER 9, 2008) (REUTERS) U.S. TREASURY UNDERSECRETARY, DAVID MCCORMICK, ARRIVING FOR NEWS CONFERENCE REPORTER TYPING ON A COMPUTER (SOUNDBITE) (English) U.S. TREASURY UNDERSECRETARY, DAVID MCCORMICK, SAYING: "The administration has been in touch with President-elect Obama's team and there is an openness to making sure that he is very much up to speed on what will be discussed and may or may not participate depending on the interest of the president-elect." CAMERAMEN IN NEWS CONFERENCE (SOUNDBITE) (English) U.S. TREASURY UNDERSECRETARY, DAVID MCCORMICK, SAYING: "Now many other countries are thinking about or have executed stimulus packages of their own. So, I think those stimulus packages will be designed to meet the specific needs of those individual economies and we certainly welcome the steps taken by the Chinese, but I wouldn't presume to give feedback on what the right design for the Chinese government would be, but we think its a welcome step." GENERAL VIEW OF NEWS CONFERENCE
  • Embargoed: 25th November 2008 12:00
  • Keywords:
  • Location: Brazil
  • Country: Brazil
  • Topics: Finance
  • Reuters ID: LVAAM15QLGP46X7LBGPN1V3HIRAZ
  • Story Text: The G20 group of advanced and big emerging economies agreed on Sunday (November 09) on the need for coordinated action to fight the financial crisis, G20 president Brazil said.
    But Brazilian Finance Minister Guido Mantega said after a G20 annual meeting that details of possible coordinated action had not yet been finalized and there was no agreement on proposals to increase regulation in financial markets.
    Mantega said that coordinated action was necessary to battle the international financial crisis.

    "There is a consensus that we need coordinated action by countries to deal with this crisis. As it is a global crisis, it affects all countries and all markets and therefore requires a global action and the search for adequate institutions to exercise this conjunct and coordinated action by countries," he said.
    Several emerging countries have said they need to be given more voice in managing global finance that has long been the preserve of rich countries, which are members of the G7 group.
    The United Kingdom's Secretary to the Treasury and future president of the G20, Stephen Timms, said there was a strong determination by all nations to decide upon which actions should be taken to tackle the crisis.

    "There is a consensus that action is needed and a genuine will to work together over the period ahead to address the situation that we all face.
    Leaders, of course, are meeting as we have been reminded by Trevor (Manuel) in Washington next week to build on the discussions that we've had. We want urgent coordinated international action," he told reporters in a news conference.
    Mantega said he expected proposals for financial reforms to be discussed by G20 leaders at a summit next weekend in Washington, but any detailed plans would take between two and three months to draw up.
    According to South African Finance Minister, Trevor Andrew Manuel, the meeting in Washington will be key to define the G20's future role in the global economy.

    "G-20 will have a far more defined role in respect of global issues and I think that the meeting called in Washington by President Bush for next Saturday, the 15th of November, is going to be important in defining the role of G-20," he said.
    China's massive government spending package to boost domestic demand is "good news" that will help the global economy ride out the financial crisis, the International Monetary Fund (IMF) managing director Dominique Strauss-Kahn said on Sunday (November 09).
    After the G20 finance meeting in Sao Paulo, Strauss-Kahn, said that China's package would help iron out global economic inequities.

    "I am very happy to see, for instance, that the Chinese just announced a big support on the fiscal side, which is exactly in line with what we (IMF) asked for almost two months and what the G20 communique is explaining," he told a news conference.
    Chinese state media reported on Sunday that China had approved a 4 trillion yuan ($586 billion) stimulus package for the world's fourth-largest economy.
    The IMF chief also said he was pleased with the G20's final statement and that it would be a good starting point for next week's summit in Washington.

    "I'm rather happy with this (G20) communique, which probably will be a basis for the discussions in Washington next week, but of course, when you have heads of state and governors around the table, you never know what will be the outcome, so I guess they will have more ideas and willingness for action than what this communique has only," he told reporters.
    The U.S. administration of President George W. Bush is keeping President-elect Barack Obama's economic team "up to speed" on what will be discussed at next weekend's G20 financial summit in Washington, a U.S.
    Treasury official said on Sunday (November 9).
    David McCormick, U.S. Treasury Undersecretary for International Affairs, also said that Obama has not yet decided whether he will attend the November 15 summit, which was called to address the global financial crisis.

    "The administration has been in touch with President-elect Obama's team ... and there is an openness to making sure that he is very much up to speed on what will be discussed and may or may not participate depending on the interest of the president-elect," McCormick told reporters after a G20 finance officials meeting in Brazil.
    He also said that China's finance package would aid a global economy that has become more dependent on emerging markets.

    "Now many other countries are thinking about or have executed stimulus packages of their own. So, I think those stimulus packages will be designed to meet the specific needs of those individual economies and we certainly welcome the steps taken by the Chinese, but I wouldn't presume to give feedback on what the right design for the Chinese government would be, but we think its a welcome step," he said.
    In Brazil, finance ministers and central bank governors representing 90 percent of the world's economy met during the weekend to discuss ways to fend off the backlash of the credit crisis.
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