Mexican President Felipe Calderon said world leaders will make “significant” headway in addressing the European debt crisis at a meeting next week and called on countries to commit resources to the International Monetary Fund.
Calderon, who will host a Group of 20 summit in the Pacific coastal city of Los Cabos on June 18-19, said Mexico will also push for countries to adopt financial regulations to avoid future crises.
“There will be very significant advances on the European matter,” during the meeting, Calderon told reporters today at the presidential residence in Mexico City. Mexico will work to “establish concrete commitments to boost institutions,” specifically the IMF, he said.
Greece’s possible exit from the euro is casting a shadow over the summit as Greeks go to the polls on June 17. World leaders will be traveling to Mexico when the first results come in. The euro region’s 100 billion-euro ($125 billion) bailout plan for Spanish banks has failed to convince investors the debt crisis won’t spread.
G-20 countries agreed during the IMF’s spring meetings to more than double the lender’s war chest with $430 billion in pledges. European governments committed $200 billion of the new funds, although not all G-20 countries have pledged specific amounts.
Measures to bolster Spain’s banks should be “finalized quickly and fully explained to eliminate doubts and uncertainty that still persist and that don’t allow it to be fully appreciated,” Calderon said.
The euro area offered about 2.7 times the amount deemed the minimum necessary for Spanish banks by the IMF in a report released on June 8. Spain is the fourth euro member to request a bailout.
The G-20 will shine a spotlight on Mexico and is the biggest leaders’ summit in the nation’s history, said Calderon, who’s scheduled to leave office in December.