10 May 2010

G7 and G20 welcome EU area support measures

Both the G7 and the G20 member states support the actions taken by the Euro Area heads of state and government European Financial Stabilisation mechanism with a total volume of up to 500 billion euros.

G7 members also state that they redeploy the bilateral swap arrangements between the US Fed, the ECB and others. The Bank of Japan will be considering similar measures soon, they say.

 

Full statement G7:

Statement of G7 Finance Ministers and Central Bank Governors

We, the G7 finance ministers and central bank governors, have consulted closely on measures to restore global confidence and financial stability and promote continued recovery. Recognizing the need for exceptional action, we:

Welcome the actions by Euro Area member states to put public finances on a sustainable path by them and some other European Union states to respond to members’ needs through financial support and a new European Stabilization Mechanism;

Welcome the commitment of the Euro Area member states to involve the International Monetary Fund in financial support under the European Stabilization Mechanism;

Support the measures taken by the European Central Bank; and

Underscore the important role of coordination among G7 central banks which have committed to redeploy the bilateral swap arrangements between the Federal Reserve, European Central Bank, Bank of England, the Bank of Canada, and the Swiss National Bank. The Bank of Japan will be considering similar measures soon.

Together, these measures will make a strong contribution to financial stability, and we will continue to work together to support stability, recovery, and growth.

Press release

 

Full statement G 20:

The G20 welcomes the commitment made by the euro area Heads of State and Government to use the full range of means available to ensure the stability of the euro area and the comprehensive package of measures, including a European Financial Stabilisation mechanism with a total volume of up to 500 billion euros, announced by the Economic and Financial Affairs Council of the European Union. We also welcome the measures announced by the European Central Bank today to address severe tensions in financial markets.

 

The G20 will continue to monitor closely the development of global markets, and remains strongly committed to continue to work together to maintain global financial stability and ensure strong, sustainable and balanced global growth

 

Press release