July 12, 2010Argentina calls for regulation of international finance
Argentine President Cristina Kirchner called on Monday for an international system of financial regulation ahead of the G20's next meeting in Seoul.
"It is vital that when we arrive in Seoul in November we have an international system of financial regulation in place," she said on the first day of a China tour at the Beijing University of International Business and Economics.
"To this end, the regulation or eradication of tax havens is essential as this is a problem for all economies." The Argentine leader said she agreed with with Chinese President Hu Jintao, who had evoked a "fantasy system" of "banks, investment funds and derivatives which had created a kind of parallel international system which no one could control".
Kirchner, who will meet Hu on Tuesday before leaving Wednesday for Shanghai, also called for a new alliance of emerging economies, noting that the UN Security Council and International Monetary Fund had been around since 1945.
"This world no longer exists," she said. During her visit, Kirchner will try to win the lifting of restrictions imposed by Beijing in April on soya oil imports from Argentina, the world's largest exporter of the commodity. Some analysts believe the measure was revenge for a decision by Kirchner's centre-left government to restrict imports in certain sectors to protect its industry and employment amid the global financial crisis.
The measures led to a decline in sales of Chinese household appliances and textiles. In 2001, Argentina was beset by widespread protests and riots over austerity measures imposed by the IMF as Buenos Aires grappled with its own debt woes. The debt default later declared by the government was the largest in history at some 90 billion dollars.
Beijing (AFP)
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