The troubles of Greece and other heavily indebted European governments dominated conversations ahead of a meeting of G20 finance ministers and central bankers, Canadian finance minister Jim Flaherty said.
Gatherings such as the G20 are typically an opportunity for officials to radiate confidence, especially when financial markets are in a nervous state, as they are now.
But Flaherty was not alone in his warnings. "We can't afford to be complacent," South Korean finance minister Yoon Jeung-hyun told the opening session.
South African planning minister Trevor Manuel said he could not think of a more challenging time for the 20 leading industrialised nations. Decisions were needed, he said, to banish the spectre of a double-dip recession.
"It's important that we all understand just how fragile the recovery is," Manuel added.
As ministers got down to work, police boats patrolled near the beach hotel in Busan, where they are meeting. Authorities have stepped up security in the southern port city amid tension on the divided peninsula after South Korea accused the North of sinking one of its warships.
The 16-nation eurozone is bailing out Greece to the tune of à110-billion after Athens lost the confidence of bond markets and was unable to roll over its vast debts.
The eurozone, working with the IMF, is also putting together a à750-billion safety net for other members with debts in case they also fail to find buyers for their bonds. A forced debt restructuring would inflict heavy losses on eurozone banks. - Reuters
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