Communiqué of the ministers and governors of the Group of Ten

The Finance Ministers and Central Bank Governors of the Countries of the Group of Ten met in Washington on 4th October 1998, under the Chairmanship of Mr. Gordon Brown, Chancellor of the Exchequer of the United Kingdom. They took note of reports from Mr. Mario Draghi, Chairman of the Deputies of the Group of Ten, Mr. Michel Camdessus, Managing Director of the IMF, Mr. Lawrence Summers, Chairman of Working Party III of the OECD, and Mr. Andrew Crockett, General Manager of the BIS.

Ministers and Governors considered the topic of improved crisis prevention and management. They stressed the importance of the timely and substantive involvement of the private sector in the resolution of international financial crises. They noted the need for the disclosure of timely, comprehensive and accurate information to promote the smooth and stable operation of markets and to increase the accountability of decision makers. In that context, they called for the release of comprehensive information on net foreign exchange reserves. They also called for further efforts to achieve rapid improvements in disclosure by the private sector. They reiterated the importance of efforts in both developed and emerging market economies to strengthen financial systems. In particular, they stressed the need to encourage better management of risk by the private sector. In order to reduce the risk of moral hazard and to facilitate the orderly resolution of crises that occur, they noted that governments should limit the scope of guarantees that they provide in their markets. They encouraged their Deputies to work together with others to make further improvements with respect to crisis prevention and management.

Ministers and Governors noted that the GAB had been activated in the context of IMF support for Russia's economic programme. They stressed that the Fund needed to have sufficient resources to remain capable of catalysing policy reform and the restoration of market confidence. They urged that the necessary steps be taken to implement the agreed IMF quota increase and to put into place the New Arrangements to Borrow (NAB).

The Minister of Finance from Sweden, Mr. Erik Åsbrink, was elected Chairman of the Group of Ten for the coming year.