IMF welcomes G20 debt reduction timetable
28th June 2010
The head of the International Monetary Fund (IMF) has welcomed plans from leaders at the G20 summit to slash their national budget deficits.
At the weekend's G20 summit in Toronto, world leaders debated how to move away from promoting economic stimulus and towards cutting their deficits without damaging the recovery from the recession.
They eventually agreed on a timetable for stopping growth of public debt and starting to reduce deficits, which will be finalised when the group next meets in Seoul in November.
IMF managing director Dominique Strauss-Kahn praised the leaders' commitment to cooperating in solving global economic problems, claiming plans to reduce national deficits will safeguard recovery, create jobs and boost prosperity.
'The G20 Mutual Assessment Process shows that appropriate collective action could increase global GDP by 2.5 per cent over the medium term, creating tens of millions of jobs, lifting tens of millions more out of poverty,' he claimed.
Mr Strauss-Kahn also welcomed the summit's progress in establishing new standards of behaviour for the financial services sector, saying that this will allow credit to be channelled into the economy and strengthen the chances of recovery.