G20 Say Europe Needs To Take Extra Steps To Solve Its Debt Crisis

On Friday, a meeting of deputy finance ministers and central bankers, a group of 20 nations of powerful economies, agreed to push Europe to take extra steps to resolve the debt crisis as they inch toward a deal to boost the International Monetary Fund (IMF) firepower.

Earlier this week, the IMF announced that to raise its lending capacity by up to $500 billion, this was high on the agenda for members of 19 major economies and the EU meeting in Mexico City, amid the continuing European debt crisis.

At the end of two-day meeting, the Mexican deputy finance minister said that there is an agreement to support the different plans which support sovereign finance, and that includes the European part and the part of the International Monetary Fund.

Talking to a news conference,the Deputy Finance Minister of Mexico, Gerardo Rodriguez said that there’s no discussion yet regarding figures and specific needs, adding that he thinks there is a willingness for dialogue with all the countries.

The World Bank cut its global growth forecast earlier this month by the most in three years. The World Bank said that a recession in the euro-zone threatens to make a slowdown worse in emerging markets, and the world economy will grow 2.5% in 2012, down from a June estimate of 3.6%.

Rodriguez told media reporters that the countries outside of the G20 would also need to contribute to the IMF boost, which is looking at ways to expand its war chest that presently has about $385 billion available.

The euro region states have already pledged to contribute $192 billion and the world largest economy, the United States, said that it has no plans to make new bilateral loans, while the leaders of G20 ended last year at odds over the issue.

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Tags: Debt Crisis, economies, Europe, G20, Gerardo Rodriguez, Group of 20, IMF, International Monetary Fund, Mexico, World Bank