16 January 2013

Sergei Storchak on expectations from Russia’s G20 Presidency

Russian Deputy Finance Minister Sergei Storchak took part in the roundtable "G20 Answers to Global Challenges" at the Gaidar Forum, where he spoke of what Russia hopes to achieve within the financial track of its G20 Presidency.

In terms of global macroeconomics, Russia plans to launch a procedure for reporting on plans which have been carried out and commitments fulfilled, Sergei Storchak said. The adoption of the new plan for realizing the Framework Agreement for Strong, Sustainable and Balanced Growth is expected at the summit in St. Petersburg. This ought to draw a line under the implementation of the action plans adopted in Cannes and Los Cabos.

Russia is planning to launch an initiative for the developing local currency stock markets. Sergei Storchak mentioned that this year the G20 will actually be finalizing the realization of similar initiatives for developing local currency bond markets. "In mid 2013 we will draw a line under what we have achieved and what we have not in this initiative," he said, "but there has been a serious breakthrough, judging by the fact that investors have started to see emerging markets local currency bonds as an alternative to bonds issued by a number of European countries. We have also made great progress in the development of the sovereign debt market."

Also under Russia's Presidency there are plans for agreeing on the new International Monetary Fund quota formula and the terms and scope of the 15th replenishment of IMF funds.

Sergei Storchak also spoke of the plans to finalize the work being carried out on a number of issues related to financial regulatory reform. This includes the attempt to reset the procedure for evaluating the accuracy of credit rating agencies' positions in the financial system, making practical arrangements to regulate the shadow banking sector and finalizing the series of documents on the regulation of derivatives.