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Recession reports - China urges developed nations to maintain financial stability

Reuters quoted China Finance Ministry said major developed countries should maintain financial stability and properly handle their sovereign debt problems.

In a statement issued after a meeting of finance ministers from the BRICS nations of Brazil, Russia, India, China and South Africa, the ministry also said these countries should take flexible, effective measures to curb inflation and cross-border capital flows.

The ministry said in a statement that "We should urge major developed countries to maintain financial stability and keep the momentum of economic recovery to strike a balance between realizing short term economic growth and making fiscal system adjustments in the mid to long term."

It added that "Major developed countries should also properly handle the sovereign debt problem and reduce the negative spill over impact resulting from their policies and channel more global financial resources to developing countries."

The statement also urged the BRICS nations to coordinate on financial policies and repeated a statement made on Thursday that the countries may lend money to the International Monetary Fund or other global financial bodies to increase their firepower for fighting financial crises.

The ministry said "BRICS countries should adopt flexible, effective macro measures in a timely manner to curb inflation and fend off the effects of cross-boarder capital flows."

It said "All member countries should further improve communication in macroeconomic policies among themselves and deepen cooperation in trade, investment and finance to improve capacity for preventing external risks."

The five major emerging nations on Thursday said they may lend money to the International Monetary Fund or other global financial bodies to increase their firepower for fighting financial crises.