MoF participates in G20 Ministers of Finance and Central Bank Governors Meeting

HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs, attended the joint meeting of the Monetary and Financial Cooperation Committee - International Monetary Fund with the G20 Ministers of Finance and Central Bank Governors on Friday, 20 April, 2012. The meeting was held in Washington, USA. 

The goals behind the  joint meeting were to assess the progress of the monetary transfers provided by G20 leaders to address financial and economic crisis challenges.

These funds were meant to support strong economic growth as well as to create more job opportunities. Moreover, ministers also reviewed current economic developments and the continued economic recovery and its role in supporting policies adopted by the member states during their last meeting. 

The ministers went on to emphasize that risks facing the global economy had started to recede, while pointing out that the expected growth rates in 2012 will remain to rise moderately. They also stressed their commitment to work on reducing the risks facing the global economy by lessening public and private debt through adopting changes to current frameworks, focusing on the issue of rising unemployment rates. Additionally, the ministers noted that increasing job opportunities, maintaining financial sustainability, and promoting global balance will continue to be the most important obligations of G20 Ministers of Finance. 

The ministers stressed on the importance of protecting investments, which are one of the most important tools for global recovery. In addition, the authorization granted by G20 leaders in Cannes requires them to remain far from protection policies and to continue to cooperate with oil-producing countries to maintain the stability of energy prices. 

The Ministers participating in these meetings confirmed their willingness to take additional measures to support the priorities of the Action Plan, which the leaders of G20 will announce in June 2012. The plan is known as Los Cabos Action Plan, which will determine the fiscal and monetary policies, exchange and trade rates, and development policies for the next period. 

Regarding the International Monetary Fund, the ministers underlined the importance of broad and absolute international cooperation and commitment with an increase of $ 400 billion in the Fund’s resources in addition to increasing the quota announced in 2010. These resources are expected to be available to all members and to be administered through bilateral temporary loans for Member States. They also emphasized the continuous efforts to review the Fund's resources and quotas in June 2013. While the next increase in 2014 should be in accordance with G20 leaders commitmenets determined in the Cannes and Seoul summits. 

The ministers also welcomed the International Monetary Fund’s initiatives on financial supervision and on enhancing its current role by focusing on global and local financial stability, including the promotion of indirect national policies, where overall objectives can be achieved through careful use of Article 4. 

Similarly, the ministers stressed on the importance of ongoing work on the external sector reports, which enhances multi-analysis and supports supervision transparency. The ministers recognized the importance of political ownership, stressing the role of the Monetary and Financial Committee of the International Monetary Fund in facilitating the active intervention of the Fund to its members. They also reviewed the report of the Financial Stability Board on regulating the shadow banking system to avoid facing risks.

During their meetings the ministers sought  to complete their studies for determining high accounting standards by mid-2013, where they will support the work of the Financial Stability Board on the overall governance model for legal parties . Emphasis was placed on calling all states to join the Global Forum on Transparency and Exchange of Information, and on signing the agreement on multilateral mutual assistance.” 

Ministers were briefed on the efforts undertaken by G20 and non-Member States and their commitment to coordinate their policies and strategies and put them in the financial meeting programs of G20, which will be held in the Los Cabos. 

At the end of meetings, the ministers noted that they  received the preliminary report prepared by the Organization for Economic Co-operation and Development, in collaboration with the World Bank and the United Nations. The preliminary report consists of adding “green” growth and sustainable development policies to the agenda of structural reforms. The Minister also praised the voluntary procedures taken by some States on the integration of “green” growth and sustainable development in their own reformation agendas. 

Commenting on the outcomes of the meetings, HE Al Tayer praised G20 efforts in supporting global economic growth, and reducing market instability and budget deficits.

“We praise the efforts and commitment displayed by the G20 Ministers of Finance pertaining to supporting reform efforts by member states, reducing unemployment rates, and in supporting future growth rates. The G20 has been keen on creating more job opportunities, reaffirming medium-term financial stability and enhancing global financial balance,” HE Al Tayer added.