The Group of 20 nations probably won’t reach an agreement on how much it could set aside to aid Europe at its ministerial meeting later this month, Mexico’s Finance Minister Jose Antonio Meade said.
While increasing assistance to help Europe’s liquidity is a “relevant” topic for the G-20, it is too soon to expect details on how agencies such as the International Monetary Fund will be strengthened to achieve this goal, Meade said yesterday at an event hosted by Bloomberg in Mexico City. Finance ministers of G-20 nations are meeting in Mexico City Feb. 24-26.
The IMF proposed last month to lift its lending capacity by as much as $500 billion to insulate the world against any worsening of Europe’s debt crisis. Mexican policy makers have pushed for greater support for the fund through its current presidency of the G-20.
“From now until the end of February, with the first ministerial meeting, it’s very unlikely that a consensus will be generated, including with respect to the amount,” Meade said.
Between now and the June 18-19 leader’s summit the discussion over the amount should be more developed once there’s a clearer idea of how Europe’s crisis is evolving, he said.
“The first thing that has to happen is that Europe has to make a great effort,” as liquidity conditions improve, Meade said.
President Felipe Calderon on Jan. 26 urged G-20 nations to gather more funds to prevent the European debt crisis from destroying the euro and undermining stability elsewhere in the world.
Officials from the G-20 “are in consensus about shoring up schemes that support sovereign financing,” for both Europe and the IMF, Mexico’s Deputy Finance Minister Gerardo Rodriguez told reporters after a Jan. 20 meeting of representatives from the organization in Mexico City.