The finance ministers and central bank governors from the G20 on Saturday called for further actions to build stronger international financial system.
The G20 countries gathered in London discussed the reform of international financial institutions (IFIs) The communique from the G20 said those countries have made significant progress in strengthening the IFIs, but more needs to be done. The G20 are close to completing the delivery of 850 billion U.S. dollars of additional resources agreed in April, including an expanded, more flexible New Arrangement to Borrow; and 50 billion dollars to support social protection and safety nets, boost trade and safeguard development in low income countries.
"We welcome the overhaul of the IMF's lending facilities. We encourage the Multilateral Development Banks to make full use of their balance sheets and reaffirm our commitment to ensure they have appropriate capital, recognizing that they are fully on track to deliver $100 billion of additional lending. In the period ahead we need to focus on providing resources to low income countries to support structural reforms and infrastructure development," the communique said.
The G20 countries look forward to prompt implementation of the 2008 IFI governance reforms, and will complete World Bank reforms by Spring 2010 and the next IMF quota review by January 2011.
According to the communique, the main 20 counties in the world recognize that the IMF should remain a quota-based organization; and as part of the reforms, the voice and representation of emerging and developing economies, including the poorest, must be significantly increased to reflect changes in the world economy. To achieve the aim, G20 countries look forward to substantial progress in Pittsburgh.
Futher more, G20 reaffirm their commitment to increase accountability, strengthen the involvement of Fund Governors in strategic oversight, and agree to move to an open, transparent and merit-based selection of IFI management.
(Xinhua News Agency September 6, 2009)
