Friday, September 23, 2011

G20 pledges to take actions to preserve stability

A pledge by the world's major economies to prevent Europe's debt crisis from undermining banks and the global economy steadied financial markets.

European shares inched up from 26-month lows, buoyed by a commitment from G20 finance ministers and central bankers to "take all necessary actions to preserve the stability of the banking system and financial markets as required".

A statement issued after G20 talks in Washington said the 17-nation euro zone would implement "actions to increase the flexibility of the EFSF and to maximize its impact" by mid-October. But it left unclear whether they would go beyond an already agreed widening of the bailout fund's powers, which has so far failed to reassure investors.