G20 leaders agree to more regulation at financial summit (Extra)

Nov 15, 2008, 18:30 GMT

Washington - The world's 20 top economies reached a deal to better regulate global financial markets and take steps to halt a global economic slide in an emergency summit hosted by US President George W Bush in Washington.

The declaration includes a call for better regulation of the world's financial system and to bolster government spending aimed at spurring economic growth at a time when the global economy risk sliding into recession.

'We are determined to enhance our cooperation and work together to restore global growth and achieve needed reforms in the world's financial systems,' said the Group of 20 (G20) leaders, which includes the world's advanced economies as well as the leading emerging economies.

The leaders resolved to reform international financial market regulation and for nations to live up to those standards, including 'aligning global accounting standards.'

This in particular is aimed at the 'complex' investment instruments which have been at the centre of the financial crisis that recently swept through financial markets.

However, there was no mention of agreement on the creation of a new international financial market watchdog.

The leaders did however agree to enhance the 'legitimacy and effectiveness' of existing financial institutions such as the International Monetary Fund, the World Bank and the Swiss-based Financial Stability Forum.

The G20 leaders agreed to meet again by April 30, which will be after US president-elect Barack Obama has taken office.