Central banks from major economies
stand ready to take steps to stabilize financial markets by providing liquidity
and preventing a credit squeeze if the outcome of Greek elections on Sunday
causes tumultuous trading, G20 officials told Reuters.
A senior U.S. official cautioned that the Greek election
will not provide "the definitive signal on what happens next" in the
euro zone debt crisis. But if severe
market strains emerge after an unusual confluence of three elections this
weekend - there are important polls in Egypt and France as well - central
bankers are on standby to ensure enough cash is flowing through the financial
system.
"The central banks are preparing for coordinated action
to provide liquidity," said a senior G20 aide familiar with discussions
among international financial diplomats. His statement was confirmed by several
other G20 officials.
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