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To: Jim Willie CB who wrote (53471)	2/11/2006 12:30:42 PM
From: shades	Respond to of 110194

DJ G8: Global Economic Growth To Remain Solid In 2006 MOSCOW (Dow Jones)--The global economy will continue to grow at a "solid" pace in 2006, although high and volatile oil prices remain a threat, according to a draft of the communique to be issued by finance ministers from the Group of Eight leading nations at the conclusion of their meeting Saturday. According to the draft, which is dated Feb. 7, the possibility of a global bird flu pandemic is also a threat to the growth outlook and financial markets. "Overall, global growth remains solid and this is expected to continue in 2006," the draft said. "Risks remain, including high and volatile oil prices." According to the document, finance ministers will urge greater financial support for poor countries fighting the spread of bird flu, stressing that "donor coordination and harmonization in this case are critical." "We acknowledge the risk of a possible avian flu pandemic and its potential impact on the global economy and financial markets," the draft said. The draft makes no reference to foreign exchange issues. That's usually the case when central bankers aren't present at the meeting, and they weren't in attendance Friday and Saturday. According to the draft communique, finance ministers agree that they must step up efforts to reduce global financial imbalances. The U.S. is running a large current account deficit, while many Asian countries are running large trade surpluses, and accumulating huge dollar reserves. "We agree that better progress needs to be made in implementing policies that contribute to the gradual resolution of global imbalances and to better promote the sustainable growth of the global economy," the draft said. The draft says that finance ministers agree to "take forward work on enhancing the global energy policy dialog between oil producing and consuming countries." "This dialog can help enhance transparency, the timeliness and reliability of demand and supply data, facilitate necessary investments in exploration, production, transportation and refinery capacities as well as improve energy efficiency, energy security and develop alternative sources of energy," the draft said. It adds that finance ministers agree that "market mechanisms are vital to the effective functioning of the global energy system." The draft communique also welcomes the fact that Russia is in a position to repay some of its debts to the Paris Club of creditor nations ahead of schedule, although it makes no comment on the terms of repayment. Russia's finance ministry earlier this week said it wants to repay $12 billion of its $21 billion outstanding debt to Paris Club creditors, having repaid $15 billion in 2005. "We welcome the fact that good economic performance and the improved fiscal position will allow Russia to seek further prepayment of its eligible debt to the Paris Club of creditors," the draft said. The draft communique also reiterates the G8's commitment to combating terrorist financing. "This includes further strengthening of our asset-freezing systems and actions enhancing information sharing and further developing multilateral tools to disrupt criminal and illicit activities." -By Andrew Langley and Paul Hannon, Dow Jones Newswires, +7 495 974 8055, Andrew.Langley@dowjones.com (END) Dow Jones Newswires

To: Jim Willie CB who wrote (53471)	2/11/2006 12:31:40 PM
From: shades	Read Replies (1) \| Respond to of 110194

DJ G8:IMF Rato: Energy Prices Remain Threat To Global Growth MOSCOW (Dow Jones)--High oil prices remain a threat to global economic growth as concerns over future supply mount, the head of the International Monetary Fund said Saturday. Speaking to reporters after a meeting of finance ministers from the Group of Eight leading nations, IMF Managing Director Rodrigo de Rato said that limits to supply are now playing a greater role in keeping oil prices high. "We are seeing more and more signs the increase in the price of oil isn't only related to demand," he said. "We are facing more and more supply constraints...which could produce macroeconomic disturbances we haven't seen yet." According to the International Energy Agency, there were losses of crude oil supply amounting to some 450,000 barrels a day in January. However, it said increased production from other sources meant that total global oil supply only fell by 135,000 barrels a day in January from December. Instability in Nigeria and the nuclear row involving Iran have increased concerns about the level of global oil supply over the coming months. Rato also said that raising taxes on energy could help reduce oil consumption while boosting government revenues. "Consumption taxes on energy can play a healthy role both on revenues and on the consumption of energy," Rato said. Although he didn't explicitly refer to the U.S. as a country that might benefit from higher energy taxes, by international standards U.S. energy taxes are relatively low, and the government is running a large budget deficit. -By Elizabeth Price, Dow Jones Newswires, +1 202 549 9196, elizabeth.price@dowjones.com (END) Dow Jones Newswires February 11, 2006 06:12 ET (11:12 GMT) Copyright (c) 2006 Dow Jones & Company, Inc.- - 06 12 AM EST 02-11-06