Saturday, August 6, 2011

G20 deputies to hold crisis call Saturday: Is a huge financial crisis looming?

Deputy finance ministers from the Group of 20 leading economic powers will hold a conference call on Saturday to discuss the crises in Europe and the United States, a Brazilian finance ministry official said.

The official told Reuters the call was scheduled for 2230 GMT.

"It will be an exchange of information and opinions," the official said by e-mail without providing further details.

Investors are eager to see signs of a coordinated policy response among major economies, which might prevent the crises from spreading or getting worse.

Deputies routinely prepare the ground ahead of meetings by top officials. A European source said G7 finance ministers and central bankers from the largest developed economies would confer by telephone later on Saturday or on Sunday.

Fears of a global recession have increased in the wake of this week's sell-off in financial markets and Standard & Poor's decision to cut the U.S. long-term credit rating for the first time. (more)