Sunday, July 24, 2016

G20 Finance set the tax transparency above Brexit – Interfax

Moscow. July 24. INTERFAX.RU – The next meeting of the financial “twenty”, which this year is held under the chairmanship of China, did not give global surprises: the downside risks to global economic growth in the form of oil prices and geopolitics remain, the decision to withdraw Britain from the EU mentioned in the final communiqué only in general terms, a coup in Turkey, and did not reflected in the final document

“We have it all. (Brexit – IF) have survived, the markets have experienced and calm down, respectively, calmed policy has come to an understanding. that the consequences of the referendum – it is a long process of negotiation, where anything can happen topic is discussed as a background, not more, “-., he told reporters Deputy Finance Minister Sergei Storchak after meeting the financial G20

And the representatives of central banks saw Brexit. even the pros, as the results of the referendum have tested the strength of the national banking system

“All praise readily markets react calmly to such extraordinary circumstances” -. said Deputy Finance Minister of the Russian Federation

In a communiqué. G20 traditionally provides an assessment of the pace of global economic recovery, which is “less than desirable”. The document notes that the downside risks to the economy are stored in a volatile oil prices and low inflation in many countries. Volatility in financial markets, geopolitical conflicts, terrorism and the problem of refugees complicate the situation in the world economy, the document says.

British decision to withdraw from the EU creates uncertainty for the global economy and its impact is still to be explored, the G20 countries indicate.

communiqué no coup

Another regional theme – the coup in Turkey – at the request of the Turkish side first appeared in the draft communique: G20 countries were supporting Turkey’s legitimate government efforts to maintain economic stability and prosperity. But in the final version of the paragraph did not hit.

A week before the G20 meeting, the financial group of the Turkish military has tried to carry out an armed coup, which ended in failure. Turkey arrested about 6 thousand people suspected of involvement in an armed attempt to overthrow the government, and the state of emergency

“The logical desire of the delegation.. (Turkey – Ed.) To try to enlist the support of the president of domestic policy in this forum, but did not agree on what words should be used (in the communique), as colleagues wanted a bit more than the general words of support “, -. Storchak said

The Turkish delegation to Chengdu represented Deputy Prime Minister. country Mehmet Şimşek.

The crisis of overproduction

overproduction problem of steel, which was discussed in early July of G20 trade ministers, was reflected in the communiqué of the financial “twenty”.

Reduced consumption and increased state support for the metallurgical sector in individual countries created a new problem of overcapacity which existed in the 1990s and 2000s. Since the market can not absorb all the steel produced, which leads to lower prices and distortion signals for investors. Losses in this are all -. As the metallurgical industry, and consumers lose from market volatility

This problem exists in China, which recognized the existence of overcapacity in the steel industry in the country. However, he has pioneered the inclusion of this item in the communique, and the US and the EU.

The problem of excess capacity, compounded by the slow recovery of the global economy and weak demand had a negative impact on trade and jobs, according to the final document.

“The subsidies and other forms of state support may lead to distortions in the market and become one of the causes of global overcapacity, and therefore require attention,” – said in the draft communique

The topic. It will be discussed on September 8-9 within the framework of the OECD steel Committee. There will also be raised about the feasibility of a global forum, which will be a platform for dialogue and exchange of information on building the world’s potential production capacity and measures taken by the countries.



“non-cooperative” countries

The statements “Twenty” is the innovation related to the fact that the G20 has decided to come to grips with “non-cooperative jurisdictions,” Storchak said.

“While this is the idea, but the idea is implemented in the development of criteria by which one or that the economy will be assigned the status of “non-cooperative jurisdictions”, and then the chain will spin up, do not know how far, “- he said

In the final communiqué of the G20 countries urged States that have not yet done so, to start. without delay to the introduction in 2018 of the standard on automatic exchange of information and to sign the Multilateral Convention on mutual administrative assistance in tax matters (Multilateral Convention on mutual administrative assistance in tax matters).

“Twenty” is also stated that the support OECD proposal to develop criteria for the determination of jurisdictions not cooperating on tax transparency. G20 asked the OECD to report by July 2017 on the progress of countries with a view to preparing a list of jurisdictions that have not succeeded in the issue of bringing the standards of tax transparency to the international level.

The list should be ready for the next summit in Hamburg in July 2017 year, to publish it or not, will decide just before the summit.

The communiqué notes that in relation to the countries on this list will be accepted “protective measures” (which is not explained).

“the criteria have already identified there can be some details more, but the main three positions clear and transparent:. first – the country signed and participates in the exchange of information on request what is now is it’s must next – the country will fail.. to participate in the automatic exchange of information that is, without the request and the third -.. all the countries that do not have the status of not cooperating have to join the OECD Convention on automatic exchange of information “, -. Storchak told

according to him, while the list of the punitive measures against the countries that fall into the list, no, this is the next step.

Paris club

at this time, the financial “twenty” mentioned in the outcome document of the Paris club dealing with the regulation of the debt problems of sovereign states.

“resume the work of the working group on financial architecture, which issued the first portion of their research. The group has five areas of work, one of which – the sovereign debt issues and debt sustainability. It is because of the group went to the initiative of a more active engagement of the Paris Club in the discussion on sovereign debt restructuring mechanism “, – said Storchak

While the Paris Club is mentioned in the context of accession to the club of emerging markets Until recently, from developing.. markets, only Russia has been at the club permanent member. Now permanent membership issued Republic of Korea.

G20 countries also welcomed the regular participation of China in the meetings of the Paris club and its intention to take to play a more significant role (including negotiations on the potential membership in the club ).

“China has become the largest international creditor, respectively, in the assessment of debt sustainability and solvency of any sovereign in the developing countries do not take into account the amount of China’s claims on this country is no longer possible. Therefore, the club members are very interested in the fact that China has joined the work in the club, first of all, in terms of sharing information about their requirements “, – said Storchak

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