WASHINGTON - Herewith are the key points of a statement issued by the Group of Seven industrialized countries' finance ministers and central bank governors at the end of their meeting in Washington Friday.
ECONOMIC SITUATION
"The global economy continues to face a difficult period. We remain positive about the long-term resilience of our economies, but near-term global economic prospects have weakened.
"While economic conditions differ in our countries, downside risks to the outlook persist in view of the ongoing weakness in US residential housing markets, stressed global financial market conditions, the international impact of high oil and commodity prices, and consequent inflation pressures.
"The performance of emerging markets has been a bright spot, but these countries as well are not immune from global forces."
MARKETS SITUATION
"The turmoil in global financial markets remains challenging and more protracted than we had anticipated."
"We welcome efforts by many financial institutions to improve disclosure of exposures to structured products and related risks, and raise significant new capital."
"We welcome the coordination by major central banks to address liquidity pressures in funding markets and recognize the importance of their coordinated actions to address disruptions in global financial markets."
FOREIGN EXCHANGE
"Since our last meeting, there have been at times sharp fluctuations in major currencies, and we are concerned about their possible implications for economic and financial stability."
"We welcome China's decision to increase the flexibility of its currency, but in view of its rising current account surplus and domestic inflation, we encourage accelerated appreciation of its effective exchange rate."
FINANCIAL STABILITY FORUM (FSF) RECOMMENDATIONS
"Rapid implementation of the FSF report will not only enhance the resilience of the global financial system for the longer term but should help to support confidence and improve the functioning of the markets."
INTERNATIONAL MONETARY FUND REFORM
"We welcome the agreement on quota and voice reform in the IMF as an important step to recognize the greater global weight of dynamic economies, many of which are emerging markets, and increasing the voice of low income countries."
"We support new sources of income, including an endowment financed by a limited sale of IMF gold."
SOVEREIGN WEALTH FUNDS
"We also commend the OECD work on open investment and the IMF's commitment to deliver a set of best practices for Sovereign Wealth Funds by the IMF Annual Meetings in October."
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04/12/2008 01:44 GMT