Finance ministers from all of the G20 nations are meeting in Paris. The talks surround the issue of the debt crisis in the eurozone.
Greece remains the central focus, but fears are rising that the crisis could spread to other countries with a high GDP-to-debt ratio such as Spain and Italy.
Spain experienced a credit rating cut on Thursday, stoking fears. This cut from Standard and Poor’s came a week after Fitch also cut Spain’s rating.
Another worry is the amount of exposure that top European banks have had to Greek debt.
The country needs a bailout loan next month to keep from defaulting on its debt. It is now likely to get its next loan in November, as inspectors from the “troika” – the EU, IMF, and European Central Bank – have said that they reached an agreement with the Greek government. The agreement concerns further austerity measures.
Ahead of the G20 meeting, the Euro rose to $1.3774 against the dollar.
However, experts say that any major decisions regarding the financial crisis will not be announced until 23 October, during the meeting of European Union leaders.
European leaders are also expected to unveil measures to protect European banks that have been heavily exposed to Greece’s debt.
According to experts, the so-called “Brics” nations with emerging economies – Brazil, Russia, India, China, and South Africa – are planning to use the G20 meeting to push for the International Monetary Fund to pour more money into fixing the eurozone crisis.
U.S. Treasury Secretary, Timothy Geithner, is expected to make a fresh call for China to allow its currency to trade freely. The critics in US government say that China is undervaluing the yuan to keep give itself an artificially competitive edge.