A major effort to stop the world falling back into recession is being pledged by finance ministers and central bankers from the biggest economies.
Gathered in Washington for the International Monetary Fund and World Bank’s annual meetings, they promised to prevent Europe’s debt crisis from undermining banks and financial markets, and said the euro zone’s rescue fund could be bolstered.
The G20 statement said the euro zone’s members would implement “actions to increase the flexibility of its 440 billion-euro financial rescue fund and to maximize its impact” by the group’s next ministerial meeting in October.
IMF chief Christine Lagarde urged solidarity saying: “In these turbulent times, we must bind even closer together, because depending on the choices we make today, and in the weeks and in the months ahead, and how we implement those decisions, our collective economic fortune, will either advance or will fall back.”
The policymakers from the Group of 20 major industrialised and emerging market nations said they will “take all actions” to maintain financial stability, restore confidence and support growth.
Now the financial markets wait to see what they will actually do.