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G-7 Finance Ministers and Central Bank Governors Statement
from the meeting in Washington D.C. on April 25, 1995.

1. The ministers and governors exchanged views on current global economic and financial conditions and issues related to the review of the international economic architecture initiated at the Naples Economic Summit. The ministers and governors, joined by representatives of the EC also reviewed developments in the Russian Federation with Russian officials.
2. In reviewing the recent economic performance of the G-7, they agreed that the recent performance of their economies is encouraging. Growth in most of the major industrial countries has been stronger than expected, and the broad-based expansions now in place will contribute to increased employment. As recovery spreads, the pattern of growth will help promote adjustment of external imbalances.
3. Considerable progress has been made in establishing the conditions conducive to achievement and maintenance of price stability. The ministers and governors agreed that policies should continue to be directed toward the objective of sustaining noninflationary growth, which will in turn contribute to financial market stability.
4. Fiscal imbalances have been reduced in a number of countries. However, further efforts to raise savings and improve confidence in financial markets will be required in many countries to establish conditions conducive to lower long-term interest rates and thus underpin continued economic growth. In this context, governments need to implement existing consolidation efforts and strengthen as necessary.
5. The ministers and governors expressed concerns about recent developments in exchange markets. They agreed that recent movements have gone beyond the levels justified by underlying economic conditions in the major countries. They also agreed that orderly reversal of those movements is desirable, would provide a better basis for a continued expansion of international trade and investment, and would contribute to our common objectives of sustained noninflationary growth. They further agreed to strengthen their efforts in reducing internal and external imbalances and to continue to cooperate closely in exchange markets.
6. In preparation for the annual Economic Summit, the ministers and governors reaffirmed their strong support for the Bretton Woods Institutions, and discussed how their role could be adapted to meet the challenges of today's global economy. In this context, they reviewed the lessons that can be drawn from Mexico's recent financial problems and had an extensive discussion of approaches which may be desirable to facilitate continued progress toward sustained growth and employment, the maintenance of financial stability, and the promotion of sustainable development.
7. The ministers and governors met with Russian economic officials, led by First Deputy Prime Minister Chubais, and exchanged views on the Russian economy. They welcomed Russia's economic reform program, which has earned the IMF's support under a 6.8 billion dollar standby program, and expressed approval that the program aims at achieving a lasting stabilization of the Russian economy and the liberalization of the energy sector, which is a vital key to Russia's economic future. The ministers and governors urged Russia to expedite the second stage of its mass privatization program and the legal framework needed to support the private sector. Finally, they noted that firm implementation of Russia's 1995 economic program is essential to build the confidence of Russia's people and foreign investors in the future of Russian reform. Subject to completion of all outstanding bilateral agreements, they invited official bilateral creditors to provide an appropriate rescheduling of Russia's debt service obligations due in 1995. They also invited official bilateral creditors to include a strong good will clause pointing toward the possibility of a comprehensive rescheduling which addresses Russia's medium-term debt problems.
8. The ministers and governors congratulated Ukraine on its 1.5 billion dollar standby agreement with the IMF, which will support Ukraine's ambitious economic reform goals for 1995. It will facilitate the necessary energy sector reform and thus lay the basis for early closure of Chernobyl. The ministers and governors pledge their continued support for ongoing economic reforms in Ukraine.

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