The head of the International Monetary Fund, Dominique Strauss-Kahn, said on Sunday the G20 nations' target to halve their deficits by 2013 was not as important as the measures they implement to reduce debt.
Strauss-Kahn, the IMF managing director, said while setting the common goal to slash government debt was an interesting idea, it was oversimplifying the problem.
Talking about halving the deficits is oversimplifying the problem because it differs from one country to another, he told a news conference at the end of a two-day Group of 20 summit of rich and emerging economies.
I am more interested in the fact that countries do implement the right measures.
Strauss-Kahn said he felt more upbeat after the meeting about the willingness of G20 members to coordinate their policies to ensure the global recovery does not stall.
He said it did not matter that countries moved at different speeds to rein in their fiscal stimulus.
It could be a catastrophe if all the countries were tightening, it could totally destroy the recovery, he added.
Strauss-Kahn said the G20 did not raise the possibility of a double-dip recession and the IMF was not forecasting a relapse.
Strauss-Kahn said the fact that China was not named in the G20 communique at the end of the summit for its foreign exchange policy was not that important.
What is important, is that the move by the Chinese shows that they want to take part in this collective action to rebalance the global economy, he added. [nLDE65Q0BK]
G20 leaders dropped plans to welcome Beijing's shift toward greater exchange rate flexibility, highlighting China's sensitivity over the issue.
(Reporting by Lesley Wroughton; Editing by Peter Cooney)