WASHINGTON: The global banking lobby IIF on Thursday called on Group of 20 leaders to act decisively and jointly at their summit next week to avert the risk of another worldwide recession. The head of the Institute of International Finance, Charles Dallara, said the G20 summit in Mexico on Monday and Tuesday is a “potential decisive point.”
“The risk of a global recession again, for the second time in four years, is very real,” Dallara warned at a news conference in Washington.
The IIF managing director, who negotiated the private sector’s writedown of Greek debt, a crucial part of an international bailout of the eurozone country, presented the concerns in an open letter to the G20.
The IIF highlighted economic challenges facing “many” countries, “some lingering from the 2008-2009 crisis and exacerbated now by strains in Europe.”The uncertainty about Europe’s future is disrupting financial markets and putting the global economy at risk, said the IIF.The IIF cautioned against regulatory reforms at a time of weak market confidence.