G8 finance chiefs see 'signs of stabilisation'

By AFP

July 15, 2010 Updated Jun 14, 2009 at 9:41 PM CDT

The G8 leading world economies see "signs of stabilisation" but the situation is still uncertain and "significant risks remain," G8 finance ministers said on Saturday after talks in Italy.

"There are signs of stabilisation in our economies, including a recovery of stock markets, a decline in interest rate spreads, improved business and consumer confidence, but the situation remains uncertain and significant risks remain to economic and financial stability," they said in a statement.

They also warned that even after economic growth resumes "unemployment may continue to increase, adding: "We must remain vigilant to ensure that consumer and investor confidence is fully restored and that growth is underpinned by stable financial markets and strong fundamentals."

Reacting to growing worries about the stability of the global banking sector, the ministers said: "We reaffirm our commitment to address liquidity and capital needs of banks, as necessary, and to take all necessary actions to ensure the soundness of systemically important institutions."

Finance ministers from the Group of Eight countries -- Britain, Canada, France, Germany, Italy, Japan, Russia and the United States -- met for two days of talks in Lecce in southern Italy which ended on Saturday.

To submit a comment on this article, your email address is required. We respect your privacy and your email will not be visible to others nor will it be added to any email lists.