ACTING TREASURER

NO.107

AUSTRALIA WELCOMES G7 STATEMENTS ON REFORMING THE INTERNATIONAL

FINANCIAL SYSTEM

The Australian Government welcomes the statements overnight by the

G7 Leaders and Finance Ministers and Central Bank Governors on steps

for addressing the financial crisis and strengthening the international

financial system, the Acting Treasurer, Senator Kemp, said today.

Australia has had, and continues to play, an active role in responding

to the crisis and in efforts to reform the international financial

system.

Australia participated in the special meeting of Finance Ministers

and Central Bank Governors earlier this month which canvassed the

measures contained in the G7 Statement. Australian officials were

members of the G22 Working Groups which developed the proposals.

The Prime Minister and the Treasurer emphasised the need for results

to be achieved urgently in strengthening the international financial

system at the International Conference of Banking Supervisors, hosted

by the RBA and APRA in Sydney on 21-22 October.

The forthcoming APEC Economic Leaders meeting in Kuala Lumpur will

provide an important opportunity for further advancing these reforms

and developing support amongst a wider range of countries, including

many of the emerging economies most affected by the crisis.

In particular, as indicated by the Prime Minister in his speech to

the International Conference of Banking Supervisors, Australia is

looking to the APEC Economic Leaders’ Meeting for agreement on

action within APEC that will:

• advance the openness of regional economies and markets;
• improve economic governance; and
• strengthen the international financial architecture.

The statements by the G7 give particular recognition to the importance

of extending the contribution of the private sector in crisis prevention,

management and resolution. This issue is being examined by the Prime

Minister’s Task Force on International Financial Reform, which

is chaired by the Treasurer and includes leading private and public

sector representatives. The Task Force, which had its inaugural meeting

recently, will be making recommendations on how Australia can best

further contribute to promoting and extending these reforms.

MELBOURNE

31 October 1998