G-20 to give $1 trillion to IMF, World Bank
Global leaders pledged an additional $1 trillion to restore credit, growth and jobs in the world economy on Thursday, exceeding expectations in their plan to deal with the financial crisis.
The Group of 20 nations also agreed to renounce protectionism and pledged $250 billion in trade finance over the next two years - a key measure to help struggling developing countries, whom they promised to give a greater say in world economic affairs.
The G-20 also outlined a raft of policies to rebuild trust in the financial system, including a crackdown on tax havens and hedge funds and new rules on linking executive pay to performance.
While they did not agree to any new fiscal measures, Prime Minister Gordon Brown said the $1 trillion deal to boost funds for the International Monetary Fund, World Bank and other global institutions was unprecedented.
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"Today the largest countries of the world have agreed on a global plan for economic recovery and reform," Brown said after hosting the emergency summit in London's Docklands district.
"For the first time we have a common approach to cleaning up banks around the world to restructuring of the world financial system. We have maintained our commitment to help the world's poorest," Brown said.
"This is a collective action of people around the world working at their best."
The sweeping G-20 communique bridged a gap between the United States and European countries led by France and Germany over how far to push changes on regulation to curb the market excesses that led to the current crisis.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
