TEXT - Communique from G20 meeting in Scotland

Sat Nov 7, 2009 10:58am EST

 ST ANDREWS, Scotland, Nov 7 (Reuters) - Following is the
text of the communique issued by finance ministers and central
bank governors at their meeting in St. Andrews, Scotland.
 
 1. We, the G20 Finance Ministers and Central Bank Governors,
met at a critical point in the recovery from the crisis to
deliver the work remitted to us at Pittsburgh.
 2. Economic and financial conditions have improved following
our coordinated response to the crisis. However, the recovery is
uneven and remains dependent on policy support, and high
unemployment is a major concern. To restore the global economy
and financial system to health, we agreed to maintain support
for the recovery until it is assured.
 3. To underscore our new approach to economic cooperation,
we launched the G20 Framework for Strong, Sustainable and
Balanced Growth, adopted a detailed timetable and
initiated a new consultative mutual assessment process to
evaluate whether our policies will collectively deliver our
agreed objectives. We will be assisted in our assessment by IMF
and in our assessment by IMF and World Bank analyses and the
input of other international organisations as appropriate,
including the FSB, OECD, MDBs, ILO, WTO and UNCTAD. We agreed a
compact:
 -- to set out our national and regional policy frameworks,
programmes and projections by the end of January 2010;
 -- to conduct the initial phase of our cooperative mutual
assessment process, supported by IMF and World Bank analyses, of
the collective consistency of our national and regional policies
with our shared objectives, taking into account our
institutional arrangements, in April 2010;
 -- to develop a basket of policy options to deliver those
objectives, for Leaders to consider at their next Summit in June
2010; and,
 -- to refine our mutual assessment and develop more specific
policy recommendations for Leaders at their Summit in November
2010.
 4. Our first challenge in using the Framework will be the
transition from crisis response to stronger, more sustainable
and balanced growth, consistent with our goals of sustainable
public finances; price stability; stable, efficient and
resilient financial systems; employment creation; and poverty
reduction. While we will continue to provide support for the
economy until the recovery is secured, we also commit to develop
further our strategies for managing the withdrawal from our
extraordinary macroeconomic and financial support measures. We
agreed to cooperate and coordinate, taking into account any
spillovers caused by our strategies, and consulting and sharing
information where possible. To ensure credibility, our
plans will be based on prudent assumptions and communicated
promptly and transparently. We agreed to implement our plans
flexibly, taking full account of variations in the pace of
economic recovery and market conditions across countries and
regions, and the complex interactions between different policy
areas. The IMF and FSB will continue to assist us in
reviewing strategies and implementation, identifying areas where
coordination is particularly  important and providing
assessments of their collective impact on the global economy and
the financial system. We welcome the work of the IMF and FSB to
develop principles for exit.
 5. The International Financial Institutions (IFIs) will play
an important role in supporting our work to secure sustainable
growth, stability, job creation, development and poverty
reduction. It is therefore critical that we continue to increase
their relevance, responsiveness, effectiveness and legitimacy.
To this end, we reaffirmed our commitment to: deliver the
representation and governance reforms agreed in Pittsburgh and
reiterated the deadlines of the 2010 Spring Meetings for the
World Bank and January 2011 for the IMF; complete the
2008 quota and voice reforms; complete the review of World Bank
and RDB capital to ensure they have sufficient resources
conditional on reforms to ensure effectiveness, by the first half
of 2010; make progress on reviewing the mandate of the IMF; and,
strengthen their capability to prevent and manage future crises.
We look forward to the ambitious replenishment of IDA
and the African Development Fund, and the work on exploring the
benefits of an IDA crisis facility, and the work on the Stolen
Assets Recovery Programme. We call on the IEA, OPEC,
OECD and World Bank to produce a joint report for our next
meeting on energy subsidies, and working with our Energy
Ministers, we will prepare at that meeting implementation
strategies and timeframes, based on our national circumstances,
for rationalising and phasing out inefficient fossil fuel
subsidies that encourage wasteful consumption, and for providing
targeted assistance programmes. We call on the relevant
institutions to finalise their work on ways to avoid excessive
commodity price volatility and reaffirm our commitment to publish
national data.
 6. To continue strengthening the global financial system we
agreed to work with the FSB to maintain the momentum of our
programme of reforms, and ensure their full, timely and
consistent implementation and a level playing field, in
particular:
 -- to strengthen prudential regulation, we emphasised the
need for the Basel Committee to develop stronger standards by
end-2010 to be phased in as financial conditions improve and the
economic recovery is assured, with the aim of implementation by
end-2012. We call on supervisors to ensure that banks retain, as
needed, a greater proportion of their profits to build capital
to support lending;
 -- to ensure that compensation policies and practices
support financial stability and align with long-term value
creation, we commit to incorporate urgently within our
national frameworks the FSB standards, and call on firms to
implement these sound compensation practices immediately. The
FSB will start assessing implementation without delay and report
back with further proposals, as required, by March 2010;
 -- we welcome the new IMF/BIS/FSB report on assessing the
systemic importance of financial institutions, markets and
instruments, and the FSB's work to reduce the moral hazard posed
by systemically important institutions. We call for the rapid
development of internationally consistent, firm-specific
recovery and resolution plans and tools by end-2010. We look
forward to discussing at our next meeting the IMF's
review of options on how the financial sector could contribute
to paying for burdens associated with government interventions
to repair the banking system; and,
 -- we welcome progress by the Global Forum on tax
transparency and exchange of information, and the possible use
of a multilateral instrument. To continue tackling
non-cooperative jurisdictions (NCJs), we welcome progress made
and call on the Global Forum, FSB and FATF to complete their
peer review processes, and to assess adherence to international
standards. We call on the relevant international
institutions to further develop incentives and countermeasures
as appropriate, in line with the timescales agreed in
Pittsburgh, including through publishing lists of NCJs,
and review capacity-building mechanisms to support the efforts
of developing countries.
 7. We committed to take action to tackle the threat of
climate change and work towards an ambitious outcome in
Copenhagen, within the objective, provisions and principles of
the United Nations Framework Convention on Climate Change
(UNFCCC). We discussed climate change financing options and
recognised the need to increase significantly and urgently the
scale and predictability of finance to implement an ambitious
international agreement. Public finance can leverage significant
private investment. Increasing the scope of carbon markets
would depend on policy frameworks of developed and developing
countries and on the depth of emission reductions on the part of
developed countries. To deliver this financing, coordinated
equitable, transparent and effective institutional arrangements
will be needed. Coordination of support for country-led plans
and reporting of this support should be ensured
across all financing channels, multilateral, regional and
bilateral. We discussed a range of options and, recognising that
finance will play an important role in the delivery of the
outcome at Copenhagen, we commit to take forward further work on
climate change finance, to define financing options and
institutional arrangements.
 8. We thanked our UK hosts for their presidency of the G20
this year and welcomed the Republic of Korea as chair in 2010.
We have agreed that France will chair in 2011.
 (G20 Newsroom)
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