G-20 agree to continue stimulus till global economy recovers fully: Pranab

Finance Minister Pranab Mukherjee on Monday said that G-20 countries, a club of developed and developing nations, have agreed to continue with the stimulus packages till the global economy fully recovers.

G-20 countries decided to postpone till the full revival of the world economy the “exit strategy” aimed at withdrawing the stimulus packages given by several countries to combat the global slowdown, Mr. Mukherjee, who attended the meet of G-20 Finance Minister past week in London, said.

“Most of the Finance Ministers, including Finance Ministers of some of the developed countries, agreed to the formulations that this is not the appropriate time to work out the strategy of the exit policy ...unless the world economy is fully revived,” he said on the sidelines of a conference organised by the Forum of Financial Writers here.

G-20 ministerial meeting had agreed to “continue to implement decisively our necessary financial support measures and expansionary monetary end-fiscal policies, consistent with price stability and long term fiscal sustainability, until recovery is secured“.

A communiqué “has been adopted by the ministers...I do hope that the review (of the global economy) we have made and the consensus we have arrived at will get reflected in the meeting of heads of states in Pittsburgh,” he said earlier during the Bank of India function here.

The G20 ministerial meeting in London to assess the progress of global plan for recovery and reforms was held ahead of the Pittsburgh Summit called by the US President Barack Obama on September 24-25.

Referring to environmental issues Mr. Mukherjee said, some apprehensions are expressed by countries like India and China on meeting the cost of combating climate change.

“Our approach has always been UNFCC, United Nations Framework Convention on Climate Change is the appropriate forum...It did not get fully reflected but it was substantially reflected in the communiqué,” he said.

Acknowledging that banking system is strong in the country, Mr. Mukherjee said, the world recognises the strength of the Indian Financial system.

The fact was appreciated by the G-20 nations, he said, adding, still there are many problems and many areas which ought to be addressed.

Earlier during the day, Mr. Mukherjee inaugurated 104 outlets on the occasion of 104th foundation day of Bank of India.

He also issued 1,04,000 Kisan Credit Cards and no frill accounts on the occasion.

Mr. Mukherjee asked the bank to play a larger role at the global level for which growth and adequate capitalisation are pre-requisites.