G20 Leaders Close to Deal
Posted by John Malloy on 04/02/2009
G20 Leaders Close to Global Deal. The International Monetary Fund, which helps struggling economies, is set to get up to $500bn (£340bn) more funding.
There may also be a deal to “name and shame” countries that breach free-trade rules, BBC business editor Robert Peston reports from the G20 summit.
There will be measures to open up tax havens. Tighter regulation of banking and bankers’ pay is also expected.
“The [regulatory] system needs to be more intrusive and ask more questions,” UK Chancellor Alistair Darling told BBC News.
Significantly, leaders will also agree changes that will in effect create $250bn of new money to stimulate the global economy.
They will substantially increase the currency reserves of poorer countries by expanding the so-called special drawing rights the IMF makes available to economies in trouble.
Disagreements
Earlier, UK Business Secretary Lord Mandelson told the BBC there were still some issues to iron out.
Lord Mandelson told the BBC News channel, particularly over levels of funding for the IMF, regulation of tax havens and measures to boost global trade.
It is understood that Gordon Brown wants to go further than some other leaders on these matters.
“Our Prime Minister is excessively ambitious in what he wants out of this summit,” UK Business Secretary Lord Mandelson said. “A good thing too, because there’s absolutely no point in people just coming here and rehearsing old arguments restating old commitments.”
Key measures
Leaders started the day with a working breakfast. They took their seats at 1045 BST to begin what one minister described as “lively discussions”.
Before they began, they assembled for a team photo. Canadian Prime Minister Stephen Harper missed it when he was pulled aside by an aide. When the photo was re-taken, however, the Italian Prime Minister, Silvio Berlusconi, was absent.
Different drafts of the final communique are circulating at the summit, reflecting differing proposals on a number of issues.
The leaders of the world’s largest economies are expected to announce measures in the following key areas: …
news.bbc.co.uk
Posted by
John Malloy
on 04/02/2009. Filed under
International.
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