G-20: India favours tighter financial rules to avert future crises
21 Jun 2010
India today said it favoured stricter financial regulations, as opposed to an EU style proposal to tax banks for payment of future crisis, to support the fragile global economic recovery.
Finance secretary Ashok Chawla told reporters in New Delhi that the important thing was the global economy should fully recover. He added that India supported all efforts at raising the benchmark of financial regulations. Chawla was speaking to reporters on the agenda of G-20 meeting beginning 26 June.
Chawla will be accompanying prime minister Manmohan Singh to the meeting in Toronto.
The EU earlier this month proposed creating an emergency fund, to tackle the future debt crises, like the one it is not facing.
The EU plans to float the proposal at the G-20 meeting, which will be attended by 20 developing economies.
India has proposed tightening of regulations for the banking sector instead of a fund.
The economies of Portugal, Ireland, Italy, Greece, Spain and Hungary have come under severe stress due to the Eurozone crisis, which threatens to hit economic recovery after the 2008 global financial crisis caused by the failure of some of the largest US banks.