Satisfied with G20 outcome, concerns on board: Chidambaram

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Sydney, Feb 23: Satisfied with the outcome of G20 meeting, Finance Minister P Chidambaram on Sunday said India's concerns with regard to withdrawal of US stimulus and the need to expedite IMF quota reforms have been taken on board by the group of rich and developing nations.

"The communique has been drawn by the deputies sitting together and our concerns have been fully reflected in the communique," he told PTI in an interview after conclusion of the G20 Finance Ministers and Central Bank Governors meet. The Minister said "yes", when asked whether he was satisfied with the G20 communique.

The communique was released at the end of the conference which among others was attended by Finance Ministers of several important countries including the US, Japan, France and Australia. Representatives of global bodies like the International Monetary Fund (IMF) and European Central Bank also participated in the conference.

Collectively G20 represents 85 per cent of the global economy.

India, Chidambaram said, has expressed concern over impact of monetary easing by the US Federal Reserve on the developing countries and underlined the need to expedite the IMF quota reforms which seeks to give greater say to emerging economies in the multilateral lending body. "...when countries withdraw from quantitative easing they should keep in mind the spillovers on the developing countries," he said.

Emerging economies followed the advice of the IMF when the major economies went through a period of downturn after the 2008 global financial crisis, Chidambaram said.

Collectively G20 represents 85 per cent of the global economy.

"So when they (developed world) sought our cooperation during the economic downturn it is only fair that they cooperate with developing countries during the economic recovery," he said, while referring to the remarks of German Finance Minister Wolfgang Schaeuble that India should not attribute its problems to monetary polices of developed nations.

As regards the tapering by the US Federal Reserve, Chidambaram said the concerns of the emerging economies have been acknowledged by the G20 and it was "for the US to follow up and address the concerns of the developing countries".

Emerging economies, including India, have been asking the US, which has started gradual withdrawal of its fiscal stimulus, to be more predictable in monetary policy.

The US Federal Reserve's tapering has caused flight of capital out of emerging economies and in turn hammering their currencies. "All our central banks maintain their commitment that monetary policy settings will continue to be carefully calibrated and clearly communicated, in the context of ongoing exchange of information and being mindful of impacts on the global economy," the communique said.

The G20 countries also committed to develop new measures, for maintaining fiscal sustainability and financial sector stability, to significantly raise global growth.

As per IMF's estimates, global growth is projected at about 3.7 per cent in 2014 and at 3.9 per cent in 2015. On exchange of financial information, the G20 meeting decided to endorse the Common reporting Standard for auto exchange of tax information on a reciprocal basis.

"We expect to begin to exchange information automatically on tax matters among G20 members by the end of 2015. We call for the early adoption of the standard by those jurisdictions that are able to do so," the communique said.

The G20 meet also had an extensive discussion on boosting investment, particularly in infrastructure, and agreed there is need for structural reforms to drive growth.

"We know reform is hard. We have to earn economic growth and new jobs... It will take concrete actions across the G20 to boost investment, trade, competition and employment opportunities, as well as getting our macroeconomic fundamentals right," Australian Treasurer Joe Hockey, the G20 chair, was quoted by AFP as saying.


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