G20 meeting-deputy finance ministers

(LEAD) Deputy finance ministers of G-20 conclude agenda-setting meeting
(ATTN: UPDATES with more details, comments throughout)
SEOUL, Sept. 5 (Yonhap) -- Deputy finance ministers and senior central bank
officials from G-20 nations closed two days of meetings in South Korea Sunday
after discussing reforms in the global financial regulatory framework and other
key issues to set the agenda for the upcoming G-20 economic summit to be held
here in November, officials said.
During the two-day meeting, which opened on Saturday in Gwangju, 330 kilometers
south of Seoul, the delegates touched on the creation of a global financial
sector safety net, liquidity control and development of better transactional
standards for systemically important financial institutions (SIFI) in order to
prevent excessive risk-taking, South Korea's finance ministry said.
The ministry in charge of preparing for the upcoming the G-20 said lack of
oversight over SIFIs has been cited for bringing on the collapse of U.S.
investment giant Lehman Brothers in late 2008 that paralyzed the world's
financial market.
Officials from the 20 largest economies also agreed to hold more talks to iron
out differences on such issues as readjusting representation on the International
Monetary Fund's executive board, they said.
"On a broad level there has been understanding with South Korea's views to reform
the IMF," said a finance ministry official.
The IMF reform is centered on giving more say to underrepresented developing
member countries in the global lending body. It involves leading industrialized
economies handing over their stakes in the IMF to developing economies and
changing the method of deciding quotas.
He added that each country reported on the general direction it will take to
ensure a working framework for sustained balanced growth, although no concrete
accords were reached.
"The G-20 meeting of deputy finance and senior central bank officials this time
was the first of a series to set the agenda and schedule for the upcoming Seoul
summit," the official said. "The meeting was not designed to produce any tangible
results since there are outstanding differences of views,"
He added that views exchanged on various issues will be forwarded to another
preparatory meeting of vice minister-level officials in Washington next month
that can lay the foundation for the finance ministers meeting planned for
Gyeongju on Oct. 22-23.
The finance ministers and central bank chiefs meeting in the historic city in the
southeastern part of the country will help finalize the agenda and schedule for
the Seoul G-20 summit set for Nov. 11-12.
Meanwhile, John Lipsky, the IMF's first deputy managing director, said after the
two-day gathering ended that G-20 officials were confident that moderate economic
recovery was under way.
He said that while there are lingering uncertainties and challenges ahead, as
expressed by Korea Deputy Governor Kim Jae-chun, overall conditions are in line
with IMF estimates.
Kim said concerns surrounding volatility have an adverse effect on how the global
economy may perform in the short term.
yonngong@yna.co.kr
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