There was no discussion of a possible restructuring of Greek sovereign debt at Friday’s meeting of finance ministers and central bank governors of the Group of 20 leading developed and emerging economies, European Central Bank President Jean-Claude Trichet said.
Trichet told a press conference after the meeting that this hadn’t been an issue, repeated that “we have a plan” for dealing with Greece’s debt problems, and that that plan is still valid.
The governors and ministers had earlier agreed to a wide-ranging examination of global liquidity conditions, as part of their efforts to identify and correct persistent imbalances in the world economy. The G-20 intends to give theca greater role in surveillance of this process.
The G-20′s initiative potentially opens the door for greater external scrutiny, from the IMF, of the policies of individual central banks, such as the ECB, whose freedom of action is guaranteed in national or regional law.
“Independent central banks are playing a decisive role in providing liquidity,” Trichet said. “It is their own responsibility.”
Earlier Friday, Deutsche Bundesbank President Axel Weber, also a member of the ECB’s governing council, had spoken out against the IMF having any role in steering global liquidity levels.
Trichet was less outspoken, saying only that “global liquidity is a concept which is very, very complex,” and that central bank governors would need to work on providing analysis that is “as operationally and conceptually precise as possible.”
Source: http://blogs.wsj.com
Trichet told a press conference after the meeting that this hadn’t been an issue, repeated that “we have a plan” for dealing with Greece’s debt problems, and that that plan is still valid.
The governors and ministers had earlier agreed to a wide-ranging examination of global liquidity conditions, as part of their efforts to identify and correct persistent imbalances in the world economy. The G-20 intends to give theca greater role in surveillance of this process.
The G-20′s initiative potentially opens the door for greater external scrutiny, from the IMF, of the policies of individual central banks, such as the ECB, whose freedom of action is guaranteed in national or regional law.
“Independent central banks are playing a decisive role in providing liquidity,” Trichet said. “It is their own responsibility.”
Earlier Friday, Deutsche Bundesbank President Axel Weber, also a member of the ECB’s governing council, had spoken out against the IMF having any role in steering global liquidity levels.
Trichet was less outspoken, saying only that “global liquidity is a concept which is very, very complex,” and that central bank governors would need to work on providing analysis that is “as operationally and conceptually precise as possible.”
Source: http://blogs.wsj.com
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