LONDON (Reuters) - The G7 group of industrialized nations must consider all policy options to ease the credit crunch and stave off any further negative economic impact, British finance minister Alistair Darling said on Monday.
The G7 is due to meet in Washington on Friday and is under pressure to come up with a solution to the credit crisis that has triggered an global economic slowdown.
“The G7 should lead the international response to these events,” Darling said in a letter to delegates ahead of the meeting. Reuters obtained extracts from the letter earlier on Monday.
“I look forward to discussing with you the actions that we need to take both to ease ongoing strains in global financial markets and to strengthen the resilience of the financial system for the future. These will be essential to avoiding further negative effects on growth in our economies.”
Governments have been calling for tighter regulation of markets and more transparency among banks to restore trust in the hard-hit financial sector.
“It is essential that we have a clear plan of action,” Darling said. “We should also consider the full range of policy options to ease current market conditions.”
Reporting by Matt Falloon