The Western Group of seven (G7) Finance Ministers and Central Bank Governors recently issued a joint statement points out that the impact of the subprime mortgage crisis intensified, the financial market turmoil and rising raw material prices, the current world economy is facing major risks. For the financial markets to function properly, 7 countries of the Central Bank should, where appropriate, to the financial market supply sufficient funds to ensure that market liquidity.
Economic development, increase the uncertainty
9 February in Japan Tokyo 7 countries at the closing of the Finance Ministers and Central Bank Governors meeting, national finance officials believe that the current world economic uncertainty increases, but its overall Foundation remains very robust. Conference declared that the risks to the world economy lies in the impact of the subprime mortgage crisis in the United States continues to increase, financial market confusion as well as oil and other raw materials prices continue to rise.
: Http://finance. Germany Finance Ministers Pere · Stein BRUC after the end of the meeting, said that the Group of seven United States subprime mortgage loans because of the securities related loss may be increased to $ 400 billion. This amount has been greatly exceeded Wall Street banks and other financial institutions that show of recent weeks 1200 billion, while also significantly more than the Fed is expected to last year's $ 100 billion to $ 1500. Stein Brueckner and other several Finance Ministers have urged financial institutions to provide "information in a timely and complete loss.", in order to help prevent losses widen the momentum and restore public confidence.
Paulson said that the United States United States still face avoiding recession good opportunities. Paulson said: "I believe that our economy will continue to grow, as long as economic growth, it indicates that the recession will not occur. ”
Italy Bank President Mario · de la Kat you pointed out, the next two weeks will be critical. "Because we will be held since the financial crisis of the first audit of the accounts. "De la JI said managers ready to force the banks to announce its loss of information, and provide the number of its assets.
Ensure that market liquidity
7 countries financial Summit said they will take appropriate measures to address the global economic slowdown intensifies, but did not propose any specific remedies.
Meeting statement pointed out that, for the financial markets to function properly, 7 countries of the Central Bank should, where appropriate, to the financial market supply sufficient funds to ensure that market liquidity. At the same time, all financial institutions should be timely and accurate public and United States subprime mortgage crisis-related losses. Declaration calls on Governments and central banks in the financial field to take the necessary measures to ensure a stable economic growth. This also shows that the G7 meeting in the financial field, just to stay in the formation of a common problem to realize that this level will not develop unified coordination of monetary or fiscal policy to stimulate global growth.
Japan Finance Minister fukushiro nukaga said as 10, the Department of environment, countries should make decisions according to their own situation. He said that although the United States economy due to the housing market decline and loss of light, more concern on inflation in Europe. As for Japan, its financial institutions affected by the subprime mortgage crisis is very small, the situation is not serious.
In addition, the Conference Declaration also called on the International Monetary Fund (IMF) and other international financial institutions to strengthen the supervisory mechanisms, discover raises global financial market instability.
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