G20 Meeting of Finance Ministers

Global Economy Facing Significant Slowdown; Increase and Stability are the First Thing

On October 15th, 2011, G20 Meeting of Finance Ministers announced that they will devote their efforts to adopt international concerted action to meet the global economy challenges, with the purpose of stabilizing the bank system and financial market and fighting European Sovereign Debt Crisis.

The Final Communiqué of Paris Meeting showed that, G20 would take some necessary measures to maintain the stability of the bank system and financial market, to ensure the banks have abundant capital and financing channel to fight the present crisis.

Last Week, G20 said central banks of various countries had adopted resolute action and will offer capital liquidity to banks if necessary; the monetary policy will stabilize the commodity price and keep on supporting the economic resurgence.

This meeting has not achieved agreement on the IMF's Capital increase plan. Some main developing economy think that IMF needs even more capital to meet the European Sovereign Debt Crisis, but they were opposed by the developed economy, such as America, Canada etc.

Japanese Financial Minister Jun Azumi thinks that the IMF is enlarging the financing. Both He and Timothy Geithner, America's Secretary of the Treasury, think that there is no need to improve the IMF's loan capability to help The Eurozone to overcome the daily aggravating European Sovereign Debt Crisis.

Officials of G20 said the developing economies which are possessing large scale favorable balance of trade should keep on increasing the flexibility of their exchange rate.