04 September 2015

G20: Communiqué of the Finance Ministers and Central Bank governors meeting

[...] 2. The G-20 reaffirms the role of macroeconomic and structural policies to support its efforts to achieve strong, sustainable and balanced growth. Monetary policies will continue to support economic activity consistent with central banks’ mandates, but monetary policy alone cannot lead to balanced growth. The G-20 notes that in line with the improving economic outlook, monetary policy tightening is more likely in some advanced economies. The G-20 reiterates its commitment to move toward more market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, and avoid persistent exchange rate misalignments. The G-20 will refrain from competitive devaluations, and resist all forms of protectionism. The G-20 will implement fiscal policies flexibly to take into account near-term economic conditions, so as to support growth and job creation, while putting debt as a share of GDP on a sustainable path. To this end, the G-20 will also continue to consider the composition of our budget expenditures and revenues to support productivity, inclusiveness and growth. 

3. The G-20 will carefully calibrate and clearly communicate its actions, especially against the backdrop of major monetary and other policy decisions, to minimize negative spillovers, mitigate uncertainty and promote transparency.

4. The need to boost actual and potential output growth is a key challenge for the global economy. The G-20 remain committed to timely and effective implementation of its growth strategies that include measures to support demand and lift potential growth. [...]

5. Boosting investment is a top priority for the G-20. To this end, we have prepared country-specific investment strategies that present concrete actions in order to improve the investment ecosystem, foster efficient infrastructure investment and support financing opportunities for SMEs. [...] The G-20 also welcomes the recommendations and assessment frameworks developed by the IMF, WBG, and OECD to help countries strengthen their public investment management processes and enhance the quality of investment. [...]

6. In order to encourage private sector engagement, the G-20 acknowledges the consolidation of best practices in public private partnership (PPP) models, which can address commonly-encountered challenges. The G-20 welcomes the WBG PPP Guidelines and the OECD/WBG PPP Project Checklist which provide guidance on international best practices for preparation and implementation of PPPs. Moreover, the G-20 also endorses the business plan of the Global Infrastructure Hub, [...]

7. In recognition of major financing needs for long term investments, the G-20 also focused on examining possible alternative capital market instruments. As such, the G-20 takes note of the policy recommendations by the IMF and WBG on systematically integrating the features of asset-based financing practices into global finance. To help ensure a strong corporate and public governance framework that will promote private investment, the G-20 also endorses the G20/OECD Principles on Corporate Governance. [...]

8. The G-20 remains deeply disappointed with the continued delay in progressing the 2010 IMF Quota and Governance Reforms. The G-20 reaffirms that their earliest implementation is essential for the credibility, legitimacy and effectiveness of the Fund and remains our highest priority. The G-20 strongly urges the United States to ratify the 2010 reforms as soon as possible. [...]

9. The G-20 reaffirms its resolve to finalize the remaining core elements of the global financial reform agenda this year. The G-20 welcomes the work by the FSB, BIS and BCBS on rigorous and comprehensive quantitative impact assessments on a total-loss-absorbing-capacity standard (TLAC) for global systemically important banks and by the BCBS and IOSCO on criteria for identifying simple, transparent and comparable securitisations. [...] The G-20 recognises potential risks to financial stability arising from liability structure distortions in corporate balance sheets and ask the FSB, in 3 coordination with other international organizations, to continue to explore any systemic risks and consider policy options. [...]

11. In line with its commitments to reach to a globally fair and modern international tax system, the G-20 is in the final phase of delivering the G20/OECD Base Erosion and Profit Shifting (BEPS) Action Plan. [...] The G-20 calls on the OECD to prepare a framework by early 2016 with the involvement of interested non-G20 countries and jurisdictions, particularly developing economies, on an equal footing. The G-20 welcomes the efforts by the IMF, WBG, UN and OECD to provide appropriate technical assistance to interested developing economies in tackling the domestic resource mobilization challenges they face, including from BEPS. 

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Full communiqué

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