Billions of IMF, restrictions on bankers

Finance Ministers today discussed the EU Restriction of bank bonuses and financial support for the IMF.
Luxembourg Prime Minister Jean-Claude Juncker, who chairs the Eurogroup, finance ministers integrating the euro area, supported the proposal for the implementation of international restrictions on bank bonuses, police AFP. Juncker said that on his arrival in Brussels for an informal meeting of finance ministers from the European Union before the summit of the G-20 in Pittsburgh (USA) at the end of the month.

Last week, French President Nicolas Sarkozy expressed his intention to urge other countries of the G-20 to follow France’s example and reduce premiums distributed to bank dealers, to avoid the promotion of actions related to taking risks, which are considered reason for the current financial crisis. French banks have pledged to change the way down premiums and to introduce criminal penalties for dealers who have caused losses of companies. Many heads of banks, however, are of the opinion that such a measure only at national level will not be effective unless it is followed by a reduction of bonuses and the largest countries. The French proposal is supported by Germany, but Britain, which is the largest European financial center, the City of London and the United States, are reserved.

European finance ministers will discuss today at an informal meeting in Brussels EU-wide proposals for reform of the global economy and to curb bank bonuses ahead of G-20 in Pittsburgh (USA).

Presiding over a group of twenty world economies (G-20), Great Britain, came with its own initiative to coordinate the global rules to combat the imbalance of the global financial system and establishing a mechanism for early warning. Prime Minister Gordon Brown criticized the countries accumulated large reserves of foreign currency.

After discussion of European proposals for the meeting of G-20, Pittsburgh 24 and 25 September, the ministers will adopt a decision whether they need the EU to convene an emergency summit for a final confirmation of the items in the plan. EU Presidency, Sweden, has already offered emergency summit to take place on 17 September in Brussels „if necessary“.

Finance Ministers from the EU will consider the possibility of additional financing by the IMF’s 75 billion euros. 27 they have already promised to allocate 100 billion dollars, one fifth of the fund needed $ 500 billion. On Monday, finance ministers of Germany, France and Britain said Europe must increase its contribution to 175 billion dollars. Today they will ask for smaller EU countries to support them, says AP. Germany is ready to allocate 35.95 billion dollars (25.03 billion euros), France promises 18.45 billion euros (26.5 billion dollars), while Britain will increase its contribution by $ 11 billion to 26 billion dollars.

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Finance