U.S., Japan, Europe mull creating a 'global central bank'
Copyright 1998 Nando.net
Copyright 1998 Agence France-Presse
TOKYO (January 18, 1998 9:19 p.m. EST http://www.nando.net) - U.S.,
Japanese and European financial authorities are mulling the creation of
a new global body that would guarantee state and private-sector debts
of
countries in economic crisis, it was reported Sunday.
Central bankers and finance ministers of the Group of Seven (G7)
economic powers are expected to discuss the idea of setting up the
"international central bank" at a late February meeting in London, the
Mainichi Shimbun said.
The proposed bank would help ease current financial turmoil in Asia,
the
paper said in a front-page story from London.
"What is needed most for crisis-hit Asian nations are measures to keep
private-sector banks' funds from fleeing overseas and call back funds
that have already gone," Mainichi quoted unnamed financial officials as
saying.
Plans to aid Asian countries would include a system in which the state
would shoulder debts of private-sector banks and issue government bonds
guaranteed by the proposed international central bank, the paper added.
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