Finance Minister Pranab Mukherjee Arrives in Busan to Attend G-20 Finance Ministers’ Meeting

(PIB NEWS)June,03, Union Finance Minister Pranab Mukherjee arrived today in Busan, South Korea on a three days visit to attend G-20 Finance Ministers Meeting scheduled to be held on 4th and 5th June,2010. Official delegation led by Shri Mukherjee includes Shri Ashok Chawla, Finance Secretary among others. G- 20 Central Bank Governors’ Meeting will also be held during this period in Busan.During his stay in Busan, Shri Mukherjee will also hold bilateral talks with UK Chancellor of Exchequer and Ex-Finance Minister of South Korea who will be Chairing the G-20 Finance Ministers’ Meet. Before participating in the deliberations of G-20 Finance Ministers Meet starting on 4th June,2010 evening, Shri Mukherjee will also attend four nation Finance Ministers Meet of BRIC countries which will be held on the sidelines of the G-20 Finance Ministers’ Meet. Major issues which are likely to dominate the G-20 Finance Ministers’ Meet include current Global Economic situation, problem of rising fiscal deficits going upto 9 percent of GDP and high debt/GDP ratios in advanced economies and an action plan to tackle them. Beside, a review will be done of actions taken so far for building a framework for strong, sustainable and balanced growth to correct various global imbalances as decided in Pittsburgh Summit. This mainly includes need for fiscal contraction, promoting sound fiscal and monetary policy frameworks, building sound financial sector and adoption of collective policy options as a common strand across all group of countries for moving towards a more balanced economy. Beside above, Busan Ministerial Meet will be a stock taking exercise on the progress of regulatory reforms in financial sector which mainly include international rules on capital, leverage and liquidity, compensation reforms, OTC Derivatives and High Standard Accounting Standards and Non Cooperative Jurisdictions. There will be stress for completing the regulatory reforms as per the committed timelines. Other issues to be deliberated during G-20 Finance Ministers Meet include reform of International Financial Institutions(IFIs) which has always been part of G-20 AGENDA over the past Summits. While operational level reforms in IFIs have been achieved including increased lending capacity, creation of flexible lending facilities and liquidity provision to emerging economies. However the Strategic Reforms like governance reforms to enhance legitimacy, credibility and effectiveness of the IFIs are still under consideration of IMF. Other issues to come up before the G-20 Finance Ministers Meet include strengthening of Financial Safety Nets(FSNs) to cope with financial volatility, reducing the economic disruption from sudden swings in capital flows and perceived need for excessive reserve accumulation. Issues of energy and fossil fuel subsidies, financial inclusion and global food security are also likely to dominate the Meet.
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