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London Summit- Leaders’ Statement 2 April 2009

London Summit- Leaders’ Statement 2 April 2009. اصحاب السعادة والمعالى السلام عليكم ورحمة الله Good Afternoon Your Excellencies. London Summit- Leaders’ Statement 2 April 2009.

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London Summit- Leaders’ Statement 2 April 2009

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  1. London Summit- Leaders’ Statement 2 April 2009 اصحاب السعادة والمعالى السلام عليكم ورحمة الله Good Afternoon Your Excellencies

  2. London Summit- Leaders’ Statement 2 April 2009 I would like to thank you very much your Excellencies for allowing me to have this great honour to meet with you to presents this sensuous, immanent & Vital Presentation highlighting the London Summit Leader’s Statement

  3. London Summit- Leaders’ Statement 2 April 2009 All decision being made are considered as a major drivers to prosperity through getting the right Key to unlock the secrets doors of the available opportunities by accessing the right finance being introduced through a major vehicles of the IFIs

  4. London Summit- Leaders’ Statement 2 April 2009 That being loaded with liquidity as a results of the G-20 meetings to resolve the our century crisis Please join me through this fast pres. to unlock these doors and get the max benefit to our Economy

  5. London Summit- Leaders’ Statement 2 April 2009

  6. London Summit- Leaders’ Statement 2 April 2009 • We, the Leaders of the Group of Twenty, met in London on 2 April 2009. • We face the greatest challenge to the world economy in modern times; a crisis which has deepened since we last met, which affects the lives of • 2.1-Women, • 2.2-Men, • 2.3-Children • In every country, and which • All countries must join together to resolve. • A global crisis requires a global solution.

  7. London Summit- Leaders’ Statement 2 April 2009 • 3.We start from the belief that prosperity is indivisible; that growth, to be sustained, has to be • 3.1-shared; and • 3.2-That our global plan for recovery must have at its heart • 3.2.1-the needs and jobs of hard-working families, not just in developed countries but in emerging markets and the poorest countries of the world too; and • 3.2.2-Must reflect the interests, not just of today’s population, but of future generations too.

  8. London Summit- Leaders’ Statement 2 April 2009 3.3-We believe that the only sure-Foundation for sustainable globalization and rising prosperity for all is: • 3.3.1-An open world economy based on • 3.3.1.1-Market principles, • 3.3.1.2-Effective regulation, and • 3.3.1.3-Strong global institutions.

  9. London Summit- Leaders’ Statement 2 April 2009 4. We have today therefore pledged to do whatever is necessary to: • 4.1-Restore confidence, growth, and jobs. • 4.2-Repair the financial system to restore lending. • 4.3-Strengthen financial regulation to rebuild trust. • 4.4-Fund and reform our international financial institutions to overcome this crisis and prevent future ones.

  10. London Summit- Leaders’ Statement 2 April 2009 • 4.5-Promote global trade and investment and reject protectionism, to underpin prosperity; and • 4.6-Build an inclusive, green, and sustainable recovery. • By acting together to fulfill these pledges we will bring The world economy out of recession and • Prevent a crisis like this from recurring in the future.

  11. London Summit- Leaders’ Statement 2 April 2009 • 5. The agreements we have reached today • 5.1-To treble resources available to the IMF to $750 billion, • 5.2-To support a new SDR allocation of $250 billion, • 5.3-To support at least $100 billion of additional lending by the MDBs,

  12. London Summit- Leaders’ Statement 2 April 2009 • 5.4-To ensure $250 billion of support for trade finance, and • 5.5-To use the additional resources from agreed IMF gold sales for concessional finance for the poorest countries, • 5.6-Constitute an additional $1.1 trillion program of support to restore credit, growth and jobs in the world economy.

  13. London Summit- Leaders’ Statement 2 April 2009 Together with the measures we have each taken nationally, this constitutes a global plan for recovery on an unprecedented scale

  14. London Summit- Leaders’ Statement 2 April 2009A-Restoring Confidence, Growth and Jobs A-Restoring Confidence, Growth and Jobs 6.We are undertaking an unprecedented and concerted Fiscal expansion, which • 6.1-Will save or create millions of jobs which would otherwise have been destroyed, and • 6.2-That will, by the end of next year, amount to $5 trillion. • 6.2.1-Raise output by 4 per cent, and • 6.2.2-accelerate the transition to a green economy. We are committed to deliver the scale of sustained fiscal effort necessary to restore growth.

  15. London Summit- Leaders’ Statement 2 April 2009A-Restoring Confidence, growth and jobs • 7.Our central banks have also taken exceptional action. • 7.-1-Interest rates have been cut aggressively in most countries, and • 7.2-Our central banks have pledged to maintain expansionary policies for as long as needed and • 7.3-To use the full range of monetary policy instruments, including unconventional instruments, consistent with price stability.

  16. London Summit- Leaders’ Statement 2 April 2009A-Restoring Confidence, growth and jobs 8. Our actions to restore growth cannot be effective until -8.1-We restore • 8.1.1-Domestic lending and • 8.1.2-International capital flows. -8.2-We have provided significant and comprehensive support to our banking systems to provide • 8.2.1-Liquidity,

  17. London Summit- Leaders’ Statement 2 April 2009A-Restoring Confidence, growth and jobs • 8.2.2-Recapitalise financial institutions, and • 8.2.3-Address decisively the problem of impaired assets. • 8.3-We are committed to take all necessary actions to • 8.3.1-Testore the normal flow of credit through the financial system and • 8.3.2-Ensure the soundness of systemically important institutions. • 8.3.3-Implementing our policies in line with the agreed G20 framework for restoring lending and repairing the financial sector.

  18. London Summit- Leaders’ Statement 2 April 2009A-Restoring Confidence, growth and jobs 9. Taken together, these actions will constitute • 9.1-The largest fiscal and monetary stimulus and the most comprehensive support program for the financial sector in modern times. • 9.2-Acting together strengthens the impact and • 9.3-The exceptional policy actions announced so far must be implemented without delay. • 9.4-Today, we have further agreed over $1 trillion of additional resources for the world economy through our international financial institutions and trade finance.

  19. London Summit- Leaders’ Statement 2 April 2009A-Restoring Confidence, growth and jobs 10. Last month the IMF estimated that world growth in real terms would resume and rise to over 2 percent by the end of 2010. We are confident that: • 10.1-The actions we have agreed today, and • 10.2-Our unshakeable commitment to work together to restore growth and jobs, while preserving long-term fiscal sustainability. Will accelerate the return to trend growth.

  20. London Summit- Leaders’ Statement 2 April 2009A-Restoring Confidence, growth and jobs • 10.3-We commit today to • 10.3.1-Taking whatever action is necessary to secure that outcome, and • 10.3.2-We call on the IMF to assess regularly the actions taken and the global actions required

  21. London Summit- Leaders’ Statement 2 April 2009B-Repair the financial system to restore lending 11. We are resolved 11.1-To ensure long-term fiscal sustainability and 11.2-Price stability and 11.3-Will put in place credible exit strategies from the measures that need to be taken now 11.4-To support the financial sector and 11.5-Restore global demand. We are convinced that by implementing our agreed policies we will limit the longer-term costs to our economies, thereby reducing the scale of the fiscal consolidation necessary over the longer term.

  22. London Summit- Leaders’ Statement 2 April 2009B-Repair the financial system to restore lending • 12.0-We will conduct all our economic policies cooperatively and responsibly with regard to the impact on other countries and • 12.1-Will refrain from competitive devaluation of our currencies and • 12.2-Promote a stable and well-functioning international monetary system. • 12.3-We will support, now and in the future, to candid, even-handed, and independent IMF surveillance of our economies and financial sectors, of the impact of our policies on others, and of risks facing the global economy.

  23. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 13.Major failures in: • 13.1-The financial sector and • 13.2-In financial regulation and • 13.3-Supervision Were fundamental causes of the crisis. Confidence will not be restored until we rebuild trust in our financial system.

  24. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation • We will take action to build: -A stronger -More globally consistent -Supervisory and -Regulatory Framework for the future financial sector, which will support -Sustainable global growth and -Serve the needs of business and citizens.

  25. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 14.0-We each agree to ensure our domestic regulatory systems are strong. • 14.1-But we also agree to establish the much greater consistency and systematic cooperation between countries, and the framework of internationally agreed high standards, that a global financial system requires. • 14.2-Strengthened regulation and supervision must promote • 14.2.1-Propriety • 14.2.2-Integrity

  26. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 14.2.3-Transparency 14.2.4-Guard against risk across the financial system 14.2.5-Dampen rather than amplify the financial and economic cycle 14.2.6-Reduce reliance on inappropriately risky sources of financing; and 14.2.7-Discourage excessive risk-taking.

  27. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 14.3-Regulators and supervisors must: 14.3.1-Protect consumers and investors, 14.3.2-Support market discipline, 14.3.3-Avoid adverse impacts on other countries 14.3.4-Reduce the scope for regulatory arbitrage 14.3.5-Support competition and dynamism 14.3.6-keep pace with innovation in the marketplace.

  28. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 15.0-To this end we are implementing the Action Plan agreed at our last meeting, as set out in the attached progress report. • 15.01-We have today also issued a Declaration, Strengthening the Financial System. In particular we agree: • 15.1-To establish a new Financial Stability Board (FSB) with a strengthened mandate, as a successor to the Financial Stability Forum (FSF), including:

  29. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 15.1.1-All G20 Countries. 15.1.2-FSF members. 15.1.3-Spain 15.1.4-The European Commission 15.2-That the FSB should collaborate with the IMF to provide early warning of 15.2.1-Macroeconomic 15.2.2-Financial risks 15.2.3-The actions needed to address them

  30. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 15.3-To reshape our regulatory systems so that our authorities are able to identify and take account of macro-prudential risks 15.4-To extend regulation and oversight to 15.4.1-All systemically important financial institutions 15.4.2-Instruments and markets. 15.4.3-This will include, for the first time, systemically important hedge funds

  31. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 15.5-To endorse and implement: 15.5.1-The FSF’s tough new principles on pay and compensation 15.5.2-To support 15.5.2.1-Sustainable compensation schemes 15.5.2.2-The corporate social responsibility of all firms

  32. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 15.6-To take action, once recovery is assured, 15.6.1-To improve 15.6.1.1-The quality, 15.6.1.2-Quantity, and 15.6.1.3-International consistency Of capital in the banking system. 15.6.2-In future, regulation must prevent 15.6.2.1-Excessive leverage and 15.6.2.2-Require buffers of resources to be built up in good times.

  33. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 15.7-To take action against non-cooperative jurisdictions, including tax havens. 15.7.1-We stand ready to deploy sanctions to protect our public finances and financial systems. 15.7.2-The era of banking secrecy is over. 15.7.3-We note that the OECD has today published a list of countries assessed by the Global Forum against the international standard for exchange of tax information

  34. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 15.8-To call on the accounting standard setters to work urgently with supervisors and regulators to improve standards on: 15.8.1-Valuation 15.8.2-Provisioning 15.8.3-Achieve a single set of high-quality global accounting standards and

  35. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 15.9-To extend 15.9.1-Regulatory oversight and 15.9.2-Registration to Credit Rating Agencies To Ensure they meet the international code of good practice, particularly to prevent unacceptable conflicts of interest.

  36. London Summit- Leaders’ Statement 2 April 2009C-Strengthening financial supervision and regulation 16.1-We instruct our Finance Ministers to complete the implementation of these decisions in line with the timetable set out in the Action Plan. 16.2-We have asked The FSB & The IMF • 16.2.1-To monitor progress • 16.2.2.-Working with the Financial Action Taskforce • 16.2.3-Other relevant bodies • T6.2.4-to provide a report To the next meeting of our Finance Ministers in Scotland in November.

  37. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 17.0-Emerging markets and developing countries, which have been the engine of recent world growth, are also now facing challenges which are adding to the current downturn in the global economy. 17.1-It is imperative for global confidence and economic recovery that capital continues to flow to them. 17.2-This will require a substantial strengthening of the international financial institutions, particularly the IMF. 17.3-We have therefore agreed today to make available an additional $850 billion of resources through the global financial institutions to support growth in

  38. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 17.3.1-Emerging market and 17.3.2-Developing countries 17.4-By helping to finance: 17.4.1-Counter-cyclical spending 17.4.2-Bank recapitalization 17.4.3-Infrastructure 17.4.4-Trade finance 17.4.5-Balance of payments support 17.4.6-Debt rollover 17.4.7-Social support To this end:

  39. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 17.5-We have agreed to increase the resources available to the IMF through immediate financing from members of $250 billion. 17.6-Subsequently incorporated into an expanded and more flexible New Arrangements to Borrow, increased by up to $500 billion, and 17.7-To consider market borrowing if necessary; and 17.8-We support a substantial increase in lending of at least $100 billion by the Multilateral Development Banks (MDBs), including 17.8.1-To low income countries, and 17.8.2-Ensure that all MDBs, including have the appropriate capital.

  40. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 18-0-It is essential that these resources can be used effectively and flexibly to support growth. 18.1-We welcome in this respect the progress made by the IMF with its new Flexible Credit Line (FCL) and

  41. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 18.2-Its reformed lending and conditionality framework which will enable the IMF to ensure that its facilities address effectively the underlying causes of countries’ balance of payments financing needs, particularly the withdrawal of external capital flows to the banking and corporate sectors. 18.3-We support Mexico’s decision to seek an FCL arrangement.

  42. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 19. We have agreed to support a general SDR allocation which will: 19.1-Inject $250 billion into the world economy 19.2-Increase global liquidity 19.3-Urgent ratification of the Fourth Amendment.

  43. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 20-In order for our financial institutions to help manage the crisis and prevent future crises we must: 20.1-Strengthen their 20.1.1-Longer term relevance 20.1.2-Effectiveness and 20.1.3-Legitimacy.

  44. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 20.2-So alongside the significant increase in resources agreed today we are determined To reform and modernize the international financial institutions To ensure they can assist 20.2.1-Members and 20.2.2-Shareholders Effectively in the new challenges they face

  45. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 20.3-We will reform their 20.3.1-Mandates, 20.3.2-Scope and 20.3.3-Governance 20.4-To reflect changes in 20.4.1-The world economy and 20.4.2-The new challenges of globalization, and 20.4.3-That emerging and developing economies, including the poorest. Must have greater voice and representation.

  46. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 20.5-This must be accompanied by action to increase 20.5.1-The credibility 20.5.2-The accountability 20.6-Of the institutions through 20.6.1-Better Strategic Oversight and 20.6.2-Better decision making. To this end:

  47. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions • 20.7-We commit to implementing the package of IMF quota and voice reforms agreed in April • 2008 and call on the IMF to complete the next review of quotas by January 2011 • 20.8-We agree that, alongside this, consideration should be given to greater involvement of the • Fund’s Governors in

  48. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 20.8.1-Providing strategic direction to the IMF and 20.8.2-Increasing its accountability 20.9-We commit to implementing the World Bank reforms agreed in October 2008. 20.10-We look forward to further recommendations, at the next meetings, on voice and representation reforms on an accelerated timescale, to be agreed by the 2010 Spring Meetings.

  49. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 20.11-We agree that the heads and senior leadership of the international financial institutions should be appointed through an open, transparent, and merit-based selection process; and 20.12-Building on the current reviews of the IMF and World Bank- we asked the Chairman, working with the G20 Finance Ministers, to consult widely in an inclusive process and report back to the next meeting with proposals for further reforms to improve

  50. London Summit- Leaders’ Statement 2 April 2009D-Strengthening our global financial institutions 20.12.1-The responsiveness and 20.12.2-The adaptability Of the IFIs.

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