G7 MEETING Main points of statement

Here are the main points of the statement issued by the Group of Seven finance ministers and central bank governors after their meeting in Singapore today:
On global economic growth and outlook:
-- In our economies, performance remains strong amid moderating growth in the US, growth in the euro zone...should remain strong in the second half of the year, growth in the UK is becoming stronger and more balanced, Canada remains on a strong balanced growth path, and Japan has exited the zero-interest rate policy and its recovery is now broadly-based.

The positive outlook, however, is not without potential outside risks, e.g., tight and volatile energy markets, rising inflation expectations in some economies, and the spread of protectionist tendencies. We will remain vigilant to these developments.

We are of the view that high energy prices reflect both rising demand from strong global expansion and concerns about current and future supplies, though the prices have eased recently. In addition to promoting greater transparency and reliability in energy market data, including through development of a global common standard for reporting oil reserves, we thus encourage investment in exploration, production, transportation and refinery capacity.
On global trade talks:
---We stress the importance of advancing multilateral trade liberalization, which is essential to enhancing global growth and reducing poverty. We urge all parties to show political will and flexibility necessary to resume the Doha Development Round as soon as possible, in order to achieve a comprehensive package in agriculture, industrial products, services, including financial services, intellectual property and WTO trade rules.
This must address the concerns of developing countries, in particular the least developed countries. We also emphasize the importance of delivering aid for trade to low-income countries, consistent with the principle of aid-effectiveness. We underline the need to combat counterfeiting and piracy.
On currency issues:
---We reaffirm that exchange rates should reflect economic fundamentals. Excess volatility and disorderly movements in exchange rates are undesirable for economic growth. We continue to monitor exchange markets closely and cooperate as appropriate. Greater exchange rate flexibility is desirable in emerging economies with large current account surpluses, especially China, for necessary adjustments to occur.
On IMF reforms:
---We reaffirm our strong belief... that fundamental reform is necessary for the IMF to maintain its legitimacy, relevancy, and credibility in the changing global economy. We welcome the resolution on quota and voice reform now being considered by IMF governors, and urge all members to support it.
We endorse the objectives of making IMF quota and voting shares more responsive to changes in global economic realities in the future and enhancing the participation and voice for low-income countries. We will work intensively with all members of the IMF to ensure these objectives are met equitably.

On financial sector regulation:
---The IMF should make appropriate revisions to the guidelines so that they better define its surveillance framework for fiscal, financial sector, exchange rate and monetary policies and their collective spillovers on other countries. Together with a remit to set priorities and enhance accountability, this will improve surveillance. We look forward to the completion of this work by the 2007 Spring Meetings.
On the question of a new instrument that allows economies with market access to forestall sudden disruption in capital flows, we ask the (IMF) Managing Director to present a concrete proposal that is deemed effective and realistic, as well as adequately safeguarding IMF resources, by the 2007 Spring Meetings.
On debt relief for poor nations:
---While welcoming the increasing role of new donor countries, we believe it is imperative that all donors share information and take account of debt sustainability issues in their lending practices.
We look forward to further discussions on strengthening the debt sustainability framework in the coming months, taking into account, e.g., IDA's (International Development Association's) recently-adopted policy.
In order to secure the full delivery of debt relief under the HIPC (Heavily Indebted Poor Countries) initiative, the IFIs (international financial institutions) should redouble their efforts to encourage non-Paris Club official bilateral and commercial creditor participation in the Initiative.

On the Middle East:
---The international community has a high stake in achieving long-term political and economic stability in the Middle East. In this light we support the Government of Lebanon's efforts towards reconstruction, development and economic reform. We welcome donors' commitments to help Lebanon, and look forward to a deeper involvement of the IFIs.
On combating money laundering and terrorist financing:
-- We agreed to intensify our efforts to combat money laundering; proliferation network as well as terrorist and illicit financing by addressing global financial vulnerabilities particularly those associated with jurisdictions that have failed to recognize international standards.
We urge the FATF to focus on identifying and adopting appropriate measures within its mandate. We ask the IMF and the World Bank to work closely with the FATF to foster implementation of the relevant international standards. We also encourage all countries to publish their full evaluations.