`Stimulus to continue till global economy recovers fully`
Finance Minister Pranab Mukherjee on Monday said that G-20 countries, a club of developed and developing nations, have agreed to continue with the stimulus packages till the global economy fully recovers.
New Delhi: Finance Minister Pranab Mukherjee
on Monday said that G-20 countries, a club of developed and
developing nations, have agreed to continue with the stimulus
packages till the global economy fully recovers.
G-20 countries decided to postpone till the full revival
of the world economy the "exit strategy" aimed at withdrawing
the stimulus packages given by several countries to combat the
global slowdown, Mukherjee, who attended the meet of G-20
Finance Minister past week in London, said.
"Most of the Finance Ministers, including Finance
Ministers of some of the developed countries, agreed to the
formulations that this is not the appropriate time to work out
the strategy of the exit policy ...unless the world economy is
fully revived," he said on the sidelines of a conference
organised by the Forum of Financial Writers here.
G-20 ministerial meeting had agreed to "continue to
implement decisively our necessary financial support measures
and expansionary monetary end-fiscal policies, consistent with
price stability and long term fiscal sustainability, until
recovery is secured".
A communique "has been adopted by the ministers...I do
hope that the review (of the global economy) we have made
and the consensus we have arrived at will get reflected in the
meeting of heads of states in Pittsburgh," he said earlier
that the Bank of India function here.
The G20 ministerial meeting in London to assess the
progress of global plan for recovery and reforms was held
ahead of the Pittsburgh Summit called by the US President
Barack Obama on September 24-25.
Referring to environmental issues Mukherjee said, some
apprehensions are expressed by countries like India and China
on meeting the cost of combating climate change.
"Our approach has always been UNFCC, United Nations
Framework Convention on Climate Change is the appropriate
forum...It did not get fully reflected but it was
substantially reflected in the communique," he said.
Acknowledging that banking system is strong in the
country, Mukherjee said, the world recognises the strength of
the Indian Financial system.
The fact was appreciated by the G20 nation, he said,
adding, still there are many problems and many areas which
ought to be addressed.
Earlier during the day, Mukherjee inaugurated 104
outlets on the occasion of 104th foundation day of Bank of
He also issued 1,04,000 Kisan Credit Cards and no
frill accounts on the occasion.
Mukherjee asked the bank to play a larger role at the
global level for which growth and adequate capitalisation are