Johannesburg - South Africa is not in a position to play a role in assisting the eurozone out of its debt crisis, Reserve Bank governor Gill Marcus said.
"My own approach would be that it needs the Group of 20
as a whole to look at what needs to be done, because it is not for us to plug
gaps," Marcus was quoted as saying in Business Day on Thursday.
"There has to be a coherent strategy, a coordinated
approach and they have got to take the decisions. We can't solve (the problems
of) Spain or Italy. It is their job."
She warned that any plan involving the Brics nations -
Brazil, Russia, India, China, South Africa - in helping the eurozone resolve
its crisis needed to be "looked at very carefully".
"I think you can't just have something which says this
is something which we can do," Marcus said on Wednesday while briefing
parliament's finance committee on the SA Reserve Bank's annual report.
"Our reserves are nothing like China's. China's are in
the trillions, we have $50bn."
Prior to a meeting of leading emerging market economies in
Washington last month, Brazil's Finance Minister Guido Mantega said the Brics
would consider what they could do to help the eurozone.
When Finance Minister Pravin Gordhan returned from that meeting, he said every country had to contribute to resolving the eurozone financial crisis.
"There was a recognition that we are all in this
together... even the Brics countries can't set themselves apart from the
solution," he told media at the time.
Gordhan said there was recognition at the meeting that no one wanted the contagion from the eurozone to damage other economies around the world.
It was key, however that Europe should take the lead and
give effect to the bailout packages which had been decided on July 21, he said.
However, all countries, possibly through the International
Monetary Fund (IMF), needed to ensure that international agencies had
sufficient "firepower" to resolve the crisis, he said.
This could mean substantially increasing the $400bn the IMF
now had, so it could play a more active role in resolving the crisis.
"Then each of the members of the IMF... will have to
make a contribution to that... for us (South Africa) that means a couple of
hundred million dollars," Gordhan said.
"Some of the calculations floating around in
Washington... (are) that if this crisis spreads to Italy and Spain, you'd need
over $2 trillion to be able to intervene within that environment."
Marcus also told parliament's finance committee the world
would have to live with slow growth for a long time.
South Africa would have to navigate a "very, very
difficult and dangerous" environment.
The Reserve Bank felt current conditions were so severe they
would be "enormously difficult" to manage even without a recession,
according to Business Day.