The G20 is “attentive” to risks associated with the crisis in Ukraine

The G20 wisely evoked the crisis in Ukraine during their meeting in Washington on Friday and warned that they are ” aware of all the risks ” posed to global economic stability .

“We are monitoring the economic situation in Ukraine , aware of all the risks to economic and financial stability,” argued the G20 finance ministers in their statement after meeting for Thursday afternoon in the U.S. capital .

Although the words are carefully chosen , the text shows a significant change from the previous G20 meeting in late February in Sydney , where Ukraine was not mentioned in the final declaration of the meeting, failing agreement with the Russian minister.

Since then , the crisis has worsened in the former Soviet republic , and conflict with neighboring Russia has raised concerns about possible impact of this situation on global growth , still recovering .

President Barack Obama on Thursday called for U.S. allies to prepare new penalties for a Russian ” escalation” in Ukraine, where pro-Russian separatists “apparently with the support of Moscow, continue with a campaign ( … ) to erode and destabilize “the country.

On Friday , Russian Foreign Minister Sergei Lavrov warned against the rise in many European countries of ” anti-Russian feelings ” encouraged by the situation in Ukraine .
In this context of hostility, the U.S. Treasury secretary , Jacob Lew, called Friday on the international community to take ” immediate steps ” to complete the promised assistance to Ukraine by the IMF to avoid bankruptcy the country.

In late March , the IMF estimated that Ukraine needs 27,000 million in two years and endorsed a draft agreement for a line of credit 14000-18000 million. This agreement should be confirmed by the member states of the Fund in late April or early May .

In the statement, the leaders of the G20 economic noted that the Ukrainian crisis highlights the role of the IMF as ” the world’s remedy to the financial crisis.”

Fund Managing Director Christine Lagarde warned on Thursday about the impact on the recovery of the global economy “growing geopolitical risks ” in eastern Europe.

– Pressure to U.S. for IMF reform

Major world economies kept pressure on the U.S. to ratify an amendment that would double IMF resources and give a greater role for emerging countries within the institution.

The agreement was reached in 2010 but requires the approval of Congress , where it faces opposition from Republicans .

“We urge the U.S. to ratify these reforms as soon as possible ,” they wrote in their final communiqué finance ministers and warned that if not made ​​before year-end , will seek other alternatives within the Fund.

” For some reason , we were a little collateral victims of the everlasting differences we see right now ” between the Obama administration and Republican opposition , Lagarde said Thursday.

Brazilian Finance Minister Guido Mantega , said it was not possible to ” keep waiting for Godot ” , referring to the play by Samuel Beckett on two people waiting for a character named Godot , who never appears however .

– There are no miracle cures –

Not surprisingly, the G20 also called for an acceleration of global growth and pledged to take ” realistic and concrete ” action in this regard .

Two months ago , the group had set a target stimulating economic activity to achieve two percentage points of growth before 2018.

But , unlike the February meeting , this time the countries withdrew any explicit reference to the return to normal of U.S. monetary policy, which had raised concerns in emerging countries.

The reference to fighting inequality, Mantega called for the concerns of the IMF and the World Bank are converted into concrete policies, and thus revived the proposal to increase taxes or set on large fortunes .

The prospect of a tightening of monetary policy in the United States, with a rise in interest rates, pushed last year and in January last investors to flee en masse from emerging countries, some local currencies plummeted .

A lack of miracle cures , the largest financial institutions of the world insisted this week to avoid the obstacles to growth.

“The global economy remains unbalanced and degradation risks are still present ,” Lew said , stating that it is ” concerned” about the low level of inflation in the euro area, which some analysts say is at risk of deflation.

Indeed, the IMF urged on Thursday the European Central Bank ( ECB) to take steps to avoid this scenario.