G7  PLAN  TO  HELP ECONOMIES  AT  RISK

The G7 (Usa, Japan, Germany, France, UK, Italy, Canada, sometimes Russia), the group of the main industrial nations, is going to support in order to avoid financial crises to developing market economies.

The agreement on the US plan is being made in order to precede financial turmoil.

The plan has been drawed up to consolidate the global financial system. This scheme is controlled by Gordon Brown, the UK chancellor and leader of the G7 finance ministers.

The G7's heads of government states that, in order to limit the fluctuation of the boom and bust, the government must build a modern structure for the global markets. The USA have proposed a credit line , but Germany at the IMF's annual meeting said that this idea should be only examined to establish strengthened IMF financial means.

The G7 adds that the IMF's standard lending rate could be accompanied by a major involvement in the private sector, to discourage debts.

The individual goverments should grant adequate credit line, together with the loans of the IMF and financing should be decided by the G7 goverments.

As the US congress has increased IMF's capital base, the latter will find it easier to pay for this facility.

The industrial countries are going to grant an extra $ 90 bn in usable resources.

Last week a $ 18 bn quota contribution has been passed and it will include requirements to liberalise the trade, to eliminate way as the domestic debtors.

The G7 complies with IMF codes to lead the monetary and fiscal system, and to supply information about the public sector foreign exchange. Besides the G7 would create financial institutions, as hedge funds and investments banks.