Arab Today, arab today g20 bigger euro firewall needed before more imf funds
Last Updated : GMT 05:49:56
Arab Today, arab today
Arab Today, arab today

G20: Bigger euro firewall needed before more IMF funds

Arab Today, arab today

Arab Today, arab today G20: Bigger euro firewall needed before more IMF funds

Mexico City - AFP

The eurozone must put in place a bigger firewall to combat its debt crisis before other countries will help by giving more cash to the IMF, the G20 top and developing economies said. A statement released after a meeting of the group of 20 finance ministers and central bankers here said: \"Euro area countries will reassess the strength of their support facilities in March. \"This will provide an essential input in our ongoing consideration to mobilize resources to the IMF.\" Calls on the eurozone to boost their crisis-fighting war chest dominated the meeting here in Mexico City, with top officials such as US Treasury Secretary Timothy Geithner saying it was essential to prevent more fallout worldwide. \"This is going to be a very difficult process of many, many years in Europe,\" he warned after the meeting. At a crunch two-day summit in Brussels starting on Thursday, EU leaders will debate whether to combine their current firewall, the EFSF, with a permanent pot due to come into effect in July. This would give the debt-wracked 17-nation zone a total fund of some 750 billion euros ($1 trillion). Europe\'s top economic official, Olli Rehn, said he was confident leaders would decide on a reinforced firewall \"during the course of March,\" downplaying the chances of success of the summit. To add even more firepower, the eurozone has called on countries outside the bloc to bolster the IMF\'s resources. IMF chief Christine Lagarde has said the fund needs an additional $500 billion, although she said she was \"not obsessed\" by this figure. \"We have to be flexible,\" she told reporters. \"Progress on this strategy will be reviewed at the next ministerial meeting in April,\" the G20 statement said. The central bank governor of Mexico, which hosted the meeting as the current leader of the G20, said work would continue behind the scenes to come to an exact amount. \"The issue of amounts was not discussed today, but it will be an essential theme and will be worked on from now until the spring meetings of April,\" Agustin Carstens told reporters. Eurozone countries themselves have already promised 150 billion euros to the IMF in the hope of reassuring the markets they have the resources to tackle a re-emergence of the crisis. But countries outside the zone, including the United States, Britain, Japan and China insisted at the G20 meeting here that the eurozone first puts its hand in its pocket. Britain\'s Finance Minister George Osborne told Sky News: \"We are prepared to consider IMF resources but only once we see the color of the eurozone money and we have not seen the color of the eurozone money.\" However, the major sticking point to an increase in the eurozone firewall remained Germany -- the bloc\'s top economy and political powerhouse. Finance Minister Wolfgang Schaeuble made no bones of Berlin\'s opposition to pouring in more cash to the pot, saying it \"didn\'t make any economic sense.\" Nevertheless, he also noted that a decision in March would be \"timely\" given the IMF discussion on more resources a month later. A senior G20 official said that Europe was carefully managing the sequence of steps needed to put in place all the building blocks for a total deal -- bigger eurozone fund plus more IMF funds -- that would finally douse the crisis. \"It\'s not about answering the question: \'which comes first, the chicken or the egg?\' ... it\'s about moving forward together on both issues\" of the eurozone firewall and IMF funds, said French Finance Minister Francois Baroin. And while piling on the pressure on Europe to sort out its problems, the G20 statement also heaped praised on the measures already carried out, notably in crafting a second bailout package for recession-mired Greece. \"We welcome the important progress made by Europe in recent months to strengthen their fiscal positions, adopt measures to reduce financial stress... and to put Greece on a sustainable path,\" the statement said. Nevertheless, while the crisis has abated in recent weeks, the G20 warned that \"growth expectations for 2012 are moderate and downside risks continue to be high\" while adding they were \"alert\" to the risks of higher oil prices.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today g20 bigger euro firewall needed before more imf funds Arab Today, arab today g20 bigger euro firewall needed before more imf funds

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today g20 bigger euro firewall needed before more imf funds Arab Today, arab today g20 bigger euro firewall needed before more imf funds

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday