June 6, 1999
The Group of Eight will give their approval to temporary controls over short-term capital flows at their upcoming summit in Germany, a report here said Sunday. The G8 -- the Group of Seven industrialised powers plus Russia -- will agree on the need for developing countries to adopt controls as an "exceptional measure" while continuing to support the principle of free capital movement, the Asahi Shimbun daily said.
The G8 countries expect the temporary capital controls to help developing economies avert the type of economic crisis seen in some Asian countries and Latin America, the daily said. Massive outflows of international capital from Thailand in 1997 were widely blamed for triggering the Asian currency crisis.
The eight countries are also expected to agree on a stricter disclosure requirement for hedge funds, the report said. The daily said last week that Japan would announce a waiver of 400 billion yen (3.3 billon dollars) in loans for heavily indebted nations at the summit in Germany on June 18.
The G8 comprises Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.
FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Policy Forum distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C íŸ 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.
