No need for G20 co­or­di­nated stim­u­lus

Kathimerini English - - Focus -

Group of 20 fi­nance of­fi­cials do not need to take the same type of mas­sive co­or­di­nated fis­cal stim­u­lus ef­forts that they did to com­bat re­ces­sion in 2008-2009, de­spite risks posed by Bri­tain’s exit from the Euro­pean Union, a se­nior US Trea­sury of­fi­cial said yes­ter­day in Athens. “I don’t think this is a mo­ment which calls for the kind of co­or­di­nated ac­tion that say the Great Re­ces­sion did in 2008 and 2009,” the of­fi­cial told re­porters. “It re­ally is a mo­ment of cau­tion­ary – we each need to do what we can to en­sure that where growth is soft it gets stronger, and prospects for the medium and long term are im­proved.” The of­fi­cial said, how­ever, that the pre­vi­ous G20 tug of war be­tween mem­ber coun­tries press­ing for more aus­ter­ity and those seek­ing to pro­mote more growth have clearly been tipped in fa­vor of growth. and the sta­bi­liza­tion of pri­vate sec­tor de­posit flows, it said. The ELA ceil­ing is valid and up to Septem­ber 8. Greek banks have re­lied on ELA since Fe­bru­ary 2015 af­ter be­ing cut off from the ECB’s fund­ing win­dow.

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