G20 at a glance

Financial regulation

• A new Financial Stability Board, with a strengthened mandate, will replace the Financial Stability Forum

• Financial regulation and oversight will be extended to all financial institutions, instruments and markets

• This includes bringing hedge funds within the global regulatory net for the first time

• Members are committed to implementing tough new rules on pay and bonuses at a global level

• International accounting standards will be set

• Credit rating agencies will be regulated in order to remove their conflicts of interest

• A common approach to cleaning up banks’ toxic assets has been agreed

TAX HAVENS

Tax Havens

• There will be sanctions against tax havens that do not transfer information on request

• The Organisation for Economic Cooperation and Development has published a list of countries assessed by the Global Forum against the international standard for exchange of tax information

International Monetary Fund

• Resources available to the International Monetary Fund will be trebled to $750bn

• This includes a new overdraft facility, or special drawing rights allocation, of $250bn

• Additional resources of $6bn from agreed IMF gold sales will be made available for lending to the poorest countries

• The G20 also supports increased lending to the world’s poorest countries of at least $100bn by the multilateral development banks

GLOBAL TRADE

Global trade

• There will be a commitment of $250bn of support for trade finance made over the next two years

• This will be made available through export credit and investment agencies, as well as through multilateral development banks

• National regulators will be asked to make use of available flexibility in capital requirements for trade finance

Protectionism

• The G20 has pledged to resist protectionism

• There will be a commitment to naming and shaming countries that breach free trade rules

• The G20 will notify the World Trade Organization of any measures that constrain worldwide capital flows

• The G20 has called on the WTO to monitor and report publicly on these undertakings on a quarterly basis

FISCAL STIMULUS

Financial Stimulus

• Although there is no new fiscal stimulus, Gordon Brown said G20 countries are already implementing “the biggest macroeconomic stimulus the world has ever seen” – an injection of $5tn by the end of next year

0
0

NO COMMENTS