Finance chiefs pledge banking support to avoid global recession
MARSEILLE: Group of Seven finance chiefs vowed to support banks and buoy slowing economic growth as Europe's debt crisis roiled financial markets and threatened a global recession.
MARSEILLE: Group of Seven finance chiefs vowed to support banks and buoy slowing economic growth as Europe's debt crisis roiled financial markets and threatened a global recession."We will take all necessary actions to ensure the resilience of banking systems and financial markets," G7 finance ministers and central bankers said in a statement released during talks in Marseille."Concerns over the pace and future of the recovery underscore the need for a concerted effort at a global level in support of strong, sustainable and balanced growth."Renewed fears that European policymakers are failing to prevent a Greek default on its loans and contain their debt woes prompted investors to sell stocks and push the euro to a six-month low against the US dollar.Germany moved towards insulating its banks against the fallout of a possible Greek default.Adding to European sovereign-debt turmoil, Juergen Stark resigned from the European Central Bank's executive board.He had expressed opposition to a bond-purchase program, which had been expanded last month when the bank started buying Italian and Spanish debt.The sense of disarray drew fire from G7 officials, with the US Treasury Secretary, Timothy Geithner, lobbying his European counterparts to get their act together.The Canadian Finance Minister, Jim Flaherty, even suggested Greece might need to quit the euro.Governments are dithering over a revamp and management of their regional rescue fund and falling short of the closer budget ties investors say are needed to guarantee the euro's future.