Main points of G20 leaders' statement

November 12, 2010 | 18:00
(0) user say
These are the key points of a statement issued Friday by Group of 20 leaders at the end of their two-day summit in South Korea:

-- Steps to fight the global recession have delivered "strong results" but risks remain.

In particular, "uneven growth and widening imbalances are fuelling the temptation to diverge from global solutions into uncoordinated actions. However, uncoordinated policy actions will only lead to worse outcomes for all."

-- The G20 will develop "indicative guidelines" made up of a "range of indicators" to help identify large trade imbalances that "require preventive and corrective actions". First assessment of countries under the guidelines to be carried out in the next year.

-- Countries commit to "moving toward more market-determined exchange rate systems". They will do this by "enhancing exchange rate flexibility to reflect underlying economic fundamentals, and refraining from competitive devaluation of currencies".

"Advanced economies, including those with reserve currencies, will be vigilant against excess volatility and disorderly movements in exchange rates. These actions will help mitigate the risk of excessive volatility in capital flows facing some emerging countries."

-- Countries will "resist protectionism in all its forms" and will "roll back any new protectionist measures that may have arisen, including export restrictions and WTO-inconsistent measures to stimulate exports"

-- Reaffirming their commitment to fight climate change, leaders "will spare no effort to reach a balanced and successful outcome in Cancun".

-- Leaders endorse the Basel III banking regulations, to be fully phased in by January 2019, and are committed to new rules for "too big to fail" banks, known as systemically important financial institutions (SIFIs).

In particular, banks with global significance will be held to stricter standards on capital, liquidity and risk assessment. Exact rules are to be determined by the Financial Stability Board and other bodies

-- G20 nations renew aid pledges and commit to helping low-income countries develop through "inclusive, sustainable and resilient growth" with a tailored approach for each country, focusing on nine "pillars" including infrastructure. Development to stay on the agenda for future summits.

AFP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional