Washington DC, October 22, 2007 — Members of the Group of Trustees of the Principles for Stable Capital Flows and Fair Debt Restructuring in Emerging Markets met today to review the progress being made on the implementation of the Principles ^[1] within the framework of the international financial architecture.

The Trustees met at a time when emerging markets are showing both strength and resilience. This is particularly noteworthy in view of the recent strains in global financial markets. The Trustees noted that current conditions underscore the importance of two pillars of the Principles, transparency and strong investor relations. The Principles, designed primarily for emerging markets, clearly have a broader relevance for global markets.

The Trustees today took note of a report on the progress that is being made on implementation of the Principles that has been prepared by the Principles Consultative Group (PCG) and they agreed to the release of the report. The PCG consists of senior officials from a diverse mix of emerging market economies and senior executives from banks and investment firms involved in emerging markets finance. The PCG has met several times over the last year to consider economic conditions in a range of countries and encourage the pragmatic application of the Principles.

President Jean-Claude Trichet said, "The Trustees welcomed the PCG's report and noted that the work of the PCG highlights the significant role that implementation of the Principles can play. We are encouraged by the growing support for the PCG. We note the continuing improvements by national authorities in their work on data transparency and investor relations, which are key pillars of the Principles. We were pleased to see increasing interest and support for the Principles, which was evident, for example, at a roundtable discussion earlier this year in Washington that involved the broad participation of leaders of private and public sector finance, including the Managing Director of the International Monetary Fund, Rodrigo de Rato. We are also delighted to welcome those distinguished leaders of global finance who have joined the Group of Trustees since our last meeting in Singapore in 2006."

The PCG's report stated that the second year of implementation of the Principles saw the continuation of positive dialogue between national authorities and creditors. Discussions on economic policies continued to be an important element of dialogues and positive responses by sovereign authorities were welcomed in the markets.

Governor Henrique de Campos Meirelles said, "The PCG's report demonstrates that the implementation process of the Principles is building a unique collaboration between emerging markets' issuers and investors to shape a more stable framework for the markets. We are seeing how as members of the PCG gain in experience, so the discussions of country situations are benefiting from important cross-country comparisons based on the experiences of PCG members."

Mr. Toyoo Gyohten said, "The Trustees would also like to draw particular attention to the work that has been done by the PCG to develop best practices with regard to the work of creditor committees. The Principles rightly highlight the key roles of these committees. Creditors and investors have developed a basic code of best practices to ensure the most effective market-based voluntary operations of these committees if and when they are required. The proposals that the PCG has made and which are contained in its report are important."

Group of Trustees for the Principles

Co-Chairmen

Mr. Jean-Claude Trichet
President
European Central Bank
Mr. Toyoo Gyohten
President
Institute for International Monetary Affairs
former Vice Minister of Finance, Japan and former Chairman, Bank of Tokyo
Mr. Henrique de Campos Meirelles
Governor
Central Bank of Brazil

Members

Dr. Jacob A. Frenkel, Vice Chairman, American International Group, and Chairman, Group of Thirty
Mr. David Dodge, Governor, Bank of Canada
Mr. Francisco González Rodriguez, Chairman and CEO, BBVA
Mr. Jacques de Larosière, Advisor to the Chairman, BNP Paribas
Mr. Vittorio Corbo Lioi, Governor, Central Bank of Chile
Mr. William Rhodes, Chairman, President, and Chief Executive Officer, Citibank, NA, Chairman President and CEO, Citicorp Holdings Inc. and Senior Vice Chairman, Citi., Citigroup/Citibank
Mr. Klaus-Peter Mueller, Chairman of the Board of Managing Directors, Commerzbank AG
Mr. Nicholas Brady, Chairman, Darby Overseas Investments, Ltd. and former US Secretary of the Treasury
Mr. Caio Koch-Weser, Vice Chairman, Deutsche Bank AG
Mr. Xavier Musca Director General of the Treasury and Economic Policy, France
Mr. Arminio Fraga Neto, Chairman, Gavea Investimentos Ltd., and former Governor of the Central Bank of Brazil
Dr. Sri Mulyani Indrawati, Minister of Finance, Indonesia
Mr. Andrew Crockett, President, J.P. Morgan Chase International
Mr. Okyu Kwon Deputy Prime Minister and Minister of Finance and Economy, Korea
Dr. Augustin Guillermo Carstens, Minister of Finance, Mexico
Sir David Walker, Senior Advisor Morgan Stanley International Limited
Mr. Fathallah Oualalou, Minister of Finance and Privatization, Morocco
Mr. Leszek Balcerowicz, Professor, Warsaw School of Economics and Former President, National Bank of Poland
Dr. Ngozi Okonjo-Iweala, Distinguished Fellow, The Brookings Institution and Former Minister of Finance, Nigeria
Dr. ZHOU Xiaochuan, Governor, People's Bank of China
Mr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, India
Sheikh Hamad Al-Sayari, Governor, Saudi Arabian Monetary Agency
Mr. Trevor A. Manuel, Minister of Finance, South Africa
Dr. Francisco Gil Díaz, President, Telefonica Movistar and Former Minister of Finance and Public Credit, Mexico
Mr. Richard Waugh, President and CEO, The Bank of Nova Scotia
Mr. Herbert M. Allison, Chairman, President and CEO TIAA Cref
Mr. Mehmet Simsek Minister of State in Charge of Economy, Turkey
Mr. Paul A. Volcker, Former Chairman of the Board of Governors, U.S. Federal Reserve System
Mr. Pedro Pablo Kuczynski, President and CEO, Westfield Capital, and former President of the Council of Ministers, Peru
Dr. Josef Ackermann (ex-officio), Chairman of the Board of Directors Institute of International Finance