Mexico assumes G20 leadership, warns on eurozone debt

4th November 2011, Comments 0 comments

Mexico assumed the presidency of the G20 group of the world's most powerful economies on Friday and lost no time in warning that action must be taken to halt the eurozone debt crisis.

President Felipe Calderon, now head of the bloc, said the International Monetary Fund should provide loans to support a "firewall" around risky debtor countries like Italy and Spain to stop the problem spreading.

"There are countries that have a problem with solvency, as is clearly the case of Greece," Calderon told reporters at the end of the Cannes summit, the climax of France's year-long tenure in the G20 hotseat.

"There are countries that have problems with liquidity or at least countries that have no problem of liquidity nor solvency, but which have problems with credibility ... as in the case of Spain or Italy," he said.

In order to prevent the problems of endebted eurozone states from spreading, Calderon called on European Union authorities and the IMF to set up a war chest to fund intervention in bond markets.

This idea was reflected in the G20's decision to allow members to fund a "trust fund" within the IMF to make bailout loans in the eurozone.

Calderon plans to hold his own G20 summit next June 18 and 19 in the Mexican coastal resort of Los Cabos.

© 2011 AFP

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