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G20, IMF/World Bank meetings in Washington

Sep 24, 2011, 2:33 p.m.

Europe, under fire, seeks to get ahead of crisis

JAPANESE FINANCE MINISTER JUN AZUMI, IN STATEMENT AT IMFC:

"Concerns about growing sovereign debt problems in Europe and the resulting financial system vulnerability are the biggest sources of the current global financial instability. European countries should come together and take action responsibly.

"In emerging market economies, inflation and overheating remain concerns. Meanwhile, these economies are negatively affected by the economic situation of advanced economies and capital flow volatility.

"The Fund's lending facilities should be strengthened to enhance its capacity for crisis prevention and resolution ... Specifically, I propose that the Fund establish a facility capable of swiftly providing the necessary liquidity to member countries that are good performers."

IMF MANAGING DIRECTOR CHRISTINE LAGARDE:

"There was a common recognition, a common diagnosis of what is happening at the moment and of shared sense of common purpose."

"As far as the IMF is concerned, it is ready and it will deliver on any type of resources necessary and available to all its members. It is not just a euro area focused issue at the moment. There are other countries that are affected. It is a global occurrence. It just happens that the epicenter is in the euro area."

SINGAPOREAN FINANCE MINISTER AND IMFC CHAIRMAN THARMAN SHANMUGARATNAM

"What we all felt was critical was the implementation of the euro zone July 21 agreement, which is going through a process of ratification. This was critical, in enhancing the size of the EFSF and increasing the flexibility so as to maximize its impact."

"There was a willingness to see the IMF play a key role in handling the crisis and rekindling growth over the medium term. The IMF stands ready to provide stronger support where necessary."

"There was very strong resolve that we will do what it takes to prevent an escalation of the financial crisis that we face in the weeks and months to come and that we will also do what it takes to avoid the prospect of a prolonged period of stagnation in the advanced economies and therefore a prolonged period of weakness in the global economy.

IMFC COMMUNIQUE ON GLOBAL ECONOMY, CRISIS

"The global economy has entered a dangerous phase, calling for exceptional vigilance, coordination and readiness to take bold action from members and the IMF alike. We are encouraged by the determination of our euro-area colleagues to do what is needed to resolve the euro-area crisis."

IMFC COMMUNIQUE ON EURO ZONE, BANKS:

"Euro-area countries will do whatever is necessary to resolve the euro area sovereign debt crisis and ensure the financial stability of the euro area as a whole and its member states.

"...Advanced economies will ensure that banks have strong capital positions and access to adequate funding; maintain accommodative monetary policies as long as this is consistent with price stability, bearing in mind international spillovers; revive weak housing markets and repair household balance sheets; and undertake structural reforms to boost jobs and the medium-term growth potential of their economies."

IMFC COMMUNIQUE ON EMERGING MARKETS:

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