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G7 acts to strengthen global financial system
LONDON, Oct 30 (Reuters) - The Group of Seven (G7) leading
industrial nations proposed a range of measures on Friday aimed
at strengthening the global financial system and heading off
future economic crises.
British finance minister Gordon Brown, summarising a G7
statement at a news conference in London, said the group agreed
that slow growth, not inflation, was now the main risk facing
the world economy.
Britain coordinated the statement in its current capacity as
chairman of the Group of Seven, which also includes the United
States, Japan, Germany, France, Italy and Canada.
Brown said the G7 had agreed to provide additional resources
of $90 billion for the International Monetary Fund (IMF) by
increasing its quotas, or membership subscriptions. The money
would go toward paying for a new financial safety net at the
fund to help economies that run into economic trouble.
Outlining a series of steps to improve supervision of global
finance, Brown said global regulators and their systems needed
to be as sophisticated as the markets they monitor.
He also said that recession-hit Japan, the world's
second-largest economy, recognised the need to shore up its
creaking banking system as a matter of urgency. |
