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G-20 FMs set to talk euro rescue

G20 finance ministers and central bank governors will meet this weekend in Mexico City to discuss the euro zone debt crisis in the wake of the latest European rescue plan for Greece.

business Updated: Feb 23, 2012 21:54 IST

G20 finance ministers and central bank governors will meet this weekend in Mexico City to discuss the euro zone debt crisis in the wake of the latest European rescue plan for Greece.


With the latest agreement having provided temporary relief, they were expected to take a calmer look at issues including underlying structural and fiscal reforms, conditions to boost growth and firewalls to avoid contagion.

“The recovery is still fragile and vulnerable to shocks, and the G20 needs to remain active and alert to downside risks,” said Lael Brainard, under secretary of the US treasury for international affairs.

“The euro area crisis remains the foremost risk to global growth, and of course to our domestic recovery,” she said.

The Europeans hope the meeting of treasurers of the main developing and emerging countries will help advance efforts to increase resources for the International Monetary Fund (IMF) and contribute to a more permanent solution to the debt crisis.

The 17 euro zone nations already pledged in December to contribute $192 billion in the form of bilateral loans. They hope emerging countries, which have so far held back, will also participate so the IMF has enough funds to prevent euro zone contagion.

The International Monetary Fund fundraising “must have a worldwide dimension,” said Amadeu Altafaj, spokesman for the European Commission in charge of economic issues.