PARIS: The Finance Ministers and Central Bank Governors of
the G7 on Monday, Aug 8 made the following statement ahead of the opening of
trade in Asian markets and following the downgrade of U.S. debt on Friday:
In the face of renewed strains on financial markets, we, the
Finance Ministers and Central Bank Governors of the G-7, affirm our commitment
to take all necessary measures to support financial stability and growth in a
spirit of close cooperation and confidence.
We are committed to addressing the tensions stemming from the
current challenges on our fiscal deficits, debt and growth, and welcome the
decisive actions taken in the US and Europe.
The U.S. has adopted reforms that will deliver substantial
deficit reduction over the medium term. In Europe, the Euro area Summit decided
on July 21 a comprehensive package to tackle the situation in Greece and other
countries facing financial tensions, notably through the flexibilisation of the
EFSF.
We are now focused on the quick and full implementation of
the agreements achieved. We welcome the statement of France and Germany to that
effect. We also welcome the statement of the Governing Council of the ECB.
We are committed to taking coordinated action where needed,
to ensuring liquidity, and to supporting financial market functioning,
financial stability and economic growth.
These actions, together with continuing fiscal discipline
efforts will enable long-term fiscal sustainability. No change in fundamentals
warrants the recent financial tensions faced by Spain and Italy.
We welcome the additional policy measures announced by Italy
and Spain to strengthen fiscal discipline and underpin the recovery in economic
activity and job creation. The Euro Area Leaders have stated clearly that the
involvement of the private sector in Greece is an extraordinary measure due to
unique circumstances that will not be applied to any other member states of the
euro area.
We reaffirmed our shared interest in a strong and stable
international financial system, and our support for market-determined exchange
rates. Excess volatility and disorderly movements in exchange rates have
adverse implications for economic and financial stability. We will consult
closely in regard to actions in exchange markets and will cooperate as
appropriate.
We will remain in close contact throughout the coming weeks
and cooperate as appropriate, ready to take action to ensure stability and
liquidity in financial markets. - Reuters
Source : Reuters
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