No automatic bail-out in future debt crises, G10 ministers warn
Known for his commentary on international relations and US politics, Rupert Cornwell also contributes obituaries and occasionally even a column for the sports pages. With The Independent since its launch in 1986, he was the paper's first Moscow correspondent - covering the collapse of the Soviet Union – during which time he won two British Press Awards. Previously a foreign correspondent for the Financial Times and Reuters, he has also been a diplomatic correspondent, leader writer and columnist, and has served as Washington bureau editor. In 1983 he published God's Banker, about Roberto Calvi, the Italian banker found hanging from Blackfriars Bridge.
Tuesday 23 April 1996
The new tougher approach to handling an international financial emergency are among the recommendations of a working group of senior officials from the Group of Ten industrial countries, approved yesterday at a G10 session, kicking off the formal agenda of the International Monetary Fund's annual meeting here.
Designed to head off a repeat of the Mexican crisis which was only contained by an ad hoc rescue package put together by the US, the IMF and the Basle- based BIS, the working group's proposals are but one part of a big effort by the fund that ideally would prevent such near-disasters from occurring - but that if they do, to make sure a mechanism is in place to cope with them.
To prevent a repeat of the Mexican debacle which caught markets and governments by almost complete surprise, the fund wants members to commit to publish improved financial and economic statistics that would permit a potential crisis to be detected in advance. More than two dozen countries have signed up to the scheme. But if the worst comes to the worst, warns the G10 report, "there should be no presumption that any type of debt will be exempt from payments suspensions or restructuring".
Wrangling, however, is holding up plans to double the IMF's resources to tackle crisis, by enlarging the general arrangements to borrow (GAB) credit line from the existing $25bn (pounds 16.5bn) to $50bn. This would be achieved by bringing in new countries alongside the G10 countries which currently contribute to the GAB. But the newcomers, who would operate a parallel "new arrangements to borrow" credit line, are insisting on equal ranking with the founder members. Some of these latter however insist on keeping a special status.
The discussions came 24 hours after top officials of the G7, the inner group of industrial nations, had agreed that the current economic slowdown in Europe, especially in Germany and France, is essentially over.
Addressing the IMF yesterday, Kenneth Clarke, said stronger growth should resume in continental Europe in the second half of 1996.
- 1 Russell Brand says he will 'probably' give up acting to focus on his revolution
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 David Beckham's Haig Club whisky is exactly what’s wrong with the Highlands
- 4 Queen's first tweet: Reply telling Her Majesty to 'f*** off' broadcast on BBC News
- 5 #AskNigelFarage: Twitter starts hilarious Q&A for Ukip leader
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Tony Blair 'says Ed Miliband will lose 2015 general election'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Putin: The US is to blame for almost all the world's major conflicts
Poppy Appeal 2014: This is why I won't be wearing a red poppy this year
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...