04 November 2011

Statement by IMF Managing Director Christine Lagarde on the G20 Cannes Summit

Ms Lagarde said that G20 took significant steps towards a more stable and resilient international monetary system. This includes agreement on Coherent Conclusions for the Management of Capital Flows, as well as steps towards broadening the SDR basket.

“I welcome the Cannes Action Plan for Growth and Jobs as well as the other steps announced at the Summit, including the measures that will support the IMF in assisting our member countries and in promoting a more sustainable global economy. The G20 Leaders recognised that we all face daunting policy challenges as the world economy has entered a more uncertain phase. The G20 Leaders have reiterated the importance of implementing expeditiously the measures announced by the eurozone on October 26 towards establishing a comprehensive framework to address the crisis facing the region. The eurozone leaders of the G20 have reiterated their determination to do so. In this context, I welcome Italy’s decision to invite the IMF to intensify our surveillance and monitoring work, to help support the major steps being taken by the government on both fiscal adjustment and structural reforms.”

“In addition, I am encouraged by the support given by the Leaders to strengthening the role of the IMF in three areas:

First, I welcome the G20 commitment to ensure that the Fund will continue to have adequate resources to play its systemic role, for the benefit of our whole membership.

Second, building on steps already taken to enhance our lending toolkit to help our global membership cope with crises, I will work expeditiously with the IMF’s Executive Board towards adopting a new Precautionary and Liquidity Line (PLL)—to provide increased and more flexible short-term liquidity to countries with strong policies and fundamentals facing systemic shocks.

Third, the G20 underlined the importance of strengthening further IMF surveillance. In this context, we will make proposals for a new integrated decision on surveillance early next year–with the goal of increasing ownership, traction and effectiveness.

Full speech

© International Monetary Fund