a sh a
Saturday, May 13, 2023 12:00 AM
A Japanese government official said that the G7 finance ministers see the need to urgently deal with the emerging challenges posed by the widespread use of messaging applications and online banking services, although the financial system has so far maintained its resilience in the wake of several US bank failures..
The official added that while the possibility of a US default looms during the ongoing three-day meeting of G7 finance ministers and central bank governors, the US clarified the current economic situation with regard to its debt ceiling – according to what was reported by the Japanese Kyodo News Agency on Friday..
The group aims in part to boost confidence and ensure financial stability while seeking to establish coordination on addressing debt problems affecting low- and middle-income countries. US Treasury Secretary Janet Yellen warned of “economic and financial catastrophe” if the US defaulted..
Japan, which holds the presidency this year, aims to set a clear timetable for launching a “mutually beneficial” partnership with low- and middle-income countries to build strong supply chains for critical products needed to tackle climate change through decarbonisation..
During Friday’s meeting, many people supported the plan, the official said.
One of the G7’s priorities is to make supply chains robust and more resilient to future risks at a time when China’s strong stance on critical technologies and resources, such as semiconductors and rare earth materials, is causing concern..
The finance chiefs’ talks lay the groundwork for next week’s leaders’ summit in Hiroshima, where they are expected to stand firm against Russia’s war on Ukraine and China’s growing assertiveness in the Indo-Pacific region..
The G7 agreed on the need to support Ukraine “as long as necessary” and to counter Russia’s efforts to circumvent sanctions imposed by the West over its war on Ukraine..
A joint statement is expected on Saturday when the G7 members – Britain, Canada, France, Germany, Italy, Japan and the United States plus the European Union – conclude their talks..
In a rare move, six other countries, including Brazil, India and South Korea, joined an awareness session to enhance coordination on debt issues and other global challenges..
The meeting comes amid concerns about the global economy’s hold on financial markets following the collapse of three major US regional banks – Silicon Valley Bank, Signature Bank and First Republic Bank..
