Statement of G-7 Finance Ministers and Central Bank Governors

October 6, 2001

We met today to discuss international efforts to combat the financing of terrorism and to address the impact of last month's terrorist attacks on the global economy.

We stand united in our commitment to vigorously track down and intercept the assets of terrorists and to pursue the individuals and countries suspected of financing terrorists. We will implement UN sanctions to block terrorist assets. We are encouraged by the number of countries throughout the world that have already joined in international action to wage a successful fight against the financing of terrorism. We appreciate their efforts. We welcome the decision by the Financial Action Task Force (FATF) to hold an extraordinary plenary session in Washington on October 29 and 30 to expand its mandate to combat terrorist financing. We will work together to implement our Action Plan which we release today.

Last month's terrorist attacks could delay the resumption of strong growth in our economies. Decisive action has already been taken to support a robust recovery. Notwithstanding remaining short-term uncertainties, we are confident about our future prospects. We are strongly committed to bringing forward needed measures to increase economic growth and preserve the health of our financial markets. We will continue to monitor exchange markets closely and cooperate as appropriate.

Emerging market and developing economies have felt the effects of the slowdown in our economies and could be affected by uncertainty following last month's terrorist attacks. The prospects of the poorest countries could be damaged, and we will take the necessary steps to mitigate these impacts. Those countries adversely impacted by recent developments should also create the conditions for strong economic growth and sustained private capital flows, and the international financial institutions stand ready to assist.

We also discussed the opportunities flowing from greater interactions and linkages among the world's people. We agreed that greater global economic integration brings large benefits. Key to raising living standards and reducing poverty is increasing productivity growth and raising the rate of potential growth. We will do so by promoting free trade and regulatory reform, strengthened capital markets, and enhanced educational opportunity. We thus reaffirm our support for the launch of a new Round of trade negotiations at the upcoming WTO Ministerial.

Greater economic integration brings with it new challenges, requiring increased international cooperation to support sound governance and strong institutions. We will continue to take steps to address dislocations associated with economic adjustment and work to ensure that all can benefit from integration, including through well-targeted and well-coordinated development assistance, effective implementation of the HIPC [Heavily Indebted Poor Countries] Initiative, and poverty reduction strategies.

We welcome Russia's continued economic growth, progress on reform, and ratification of new anti-money laundering legislation. We look forward to additional progress in the financial sector and to an improved investment climate to help sustain growth throughout Russia.