G20 Summit plans to inject US$5tn into economy before 2011
Friday, April 3, 2009
Global trade would be supported by $250 billion (169.5 billion pounds). "We are going to act decisively to kickstart international trade. We will ensure availability of at least $250 billion over the next two years," said Gordon Brown Prime Minister of the United Kingdom.
Developing countries received $100bn which will be dispensed via Multilateral development banks. Towards this end, the IMF will sell off gold reserves.
There will be increased regulation on banking and credit ratings agencies. There was a commitment to clamp down on hedge funds, tax havens and toxic assets. To restore consumer confidence in the financial sector, a new Financial Stability Board will be initiated internationally. There would be new policies implemented to control pay and bonuses paid to the heads of banks and corporations.
The G20 leaders were adverse to protectionism and rallied to support international trade and investment.
The Leaders' statement said, "We reaffirm the commitment made in Washington: to refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organization (WTO) inconsistent measures to stimulate exports.”
Eoin O'Malley, senior adviser on international trade at BusinessEurope, said "The measure also needs to be part of wider package to avoid protectionism and conclude the Doha round which will stimulate trade growth. The key point now is to move forward with Doha. The key now is implementation. G20 governments must act quickly to provide this finance to companies that need it urgently."
- "Obama: G-20 summit is 'turning point' in economic recovery" — , April 3, 2009
- Business News. "G20 pledges US$5 trillion war chest for economic crisis" — , April 2, 2009
- "Hu Calls for Concerted Efforts to Tide over Crisis" — , April 3, 2009
- "G20 Summit Concludes, Pledges Funds of 1.1 Trillion U.S. Dollars" — April 2, 2009
- "G20 leaders seal $1tn global deal" — , April 2, 2009
- Sumeet Desai and Lesley Wroughton. "G20 agrees $250 billion trade financing deal" — , April 2, 2009