For the RecordWe, the Leaders of the Group of Twenty, met in London on 2 April 2009.•We face the greatest challenge (see huge smiles showing how they want to conquer this challenge) to the world economy in modern times; acrisis which has deepened since we last met, which affects the lives ofwomen, men, and children in every country, and which all countries mustjoin together to resolve. A global crisis requires a global solution.•We start from the belief that prosperity is indivisible; that growth,to be sustained, has to be shared; and that our global plan forrecovery must have at its heart the needs and jobs of hard-workingfamilies, not just in developed countries but in emerging markets andthe poorest countries of the world too; and must reflect the interests,not just of today's population, but of future generations too. Webelieve that the only sure foundation for sustainable globalisation andrising prosperity for all is an open world economy based on marketprinciples, effective regulation, and strong global institutions.• We have today therefore pledged to do whatever is necessary to:* restore confidence, growth, and jobs;* repair the financial system to restore lending;* strengthen financial regulation to rebuild trust;* fund and reform our international financial institutions to overcome this crisis and prevent future ones;* promote global trade and investment and reject protectionism, to underpin prosperity; and* build an inclusive, green, and sustainable recovery.Byacting together to fulfill these pledges we will bring the worldeconomy out of recession and prevent a crisis like this from recurringin the future.• The agreements we have reached today, to trebleresources available to the IMF to $750 billion, to support a new SDR[IMF special drawing rights] allocation of $250 billion, to support atleast $100 billion of additional lending by the MDBs [MultilateralDevelopment Banks], to ensure $250 billion of support for tradefinance, and to use the additional resources from agreed IMF gold salesfor concessional finance for the poorest countries, constitute anadditional $1.1 trillion programme of support to restore credit, growthand jobs in the world economy. Together with the measures we have eachtaken nationally, this constitutes a global plan for recovery on anunprecedented scale.Restoring growth and jobs• Weare undertaking an unprecedented and concerted fiscal expansion, whichwill save or create millions of jobs which would otherwise have beendestroyed, and that will, by the end of next year, amount to $5trillion, raise output by 4 per cent, and accelerate the transition toa green economy. We are committed to deliver the scale of sustainedfiscal effort necessary to restore growth.• Our central banks havealso taken exceptional action. Interest rates have been cutaggressively in most countries, and our central banks have pledged tomaintain expansionary policies for as long as needed and to use thefull range of monetary policy instruments, including unconventionalinstruments, consistent with price stability.• Our actions torestore growth cannot be effective until we restore domestic lendingand international capital flows. We have provided significant andcomprehensive support to our banking systems to provide liquidity,recapitalise financial institutions, and address decisively the problemof impaired assets. We are committed to take all necessary actions torestore the normal flow of credit through the financial system andensure the soundness of systemically important institutions,implementing our policies in line with the agreed G20 framework forrestoring lending and repairing the financial sector.• Takentogether, these actions will constitute the largest fiscal and monetarystimulus and the most comprehensive support programme for the financialsector in modern times. Acting together strengthens the impact and theexceptional policy actions announced so far must be implemented withoutdelay. Today, we have further agreed over $1 trillion of additionalresources for the world economy through our international financialinstitutions and trade finance.• Last month the IMF estimated thatworld growth in real terms would resume and rise to over 2 percent bythe end of 2010. We are confident that the actions we have agreedtoday, and our unshakeable commitment to work together to restoregrowth and jobs, while preserving long-term fiscal sustainability, willaccelerate the return to trend growth. We commit today to takingwhatever action is necessary to secure that outcome, and we call on theIMF to assess regularly the actions taken and the global actionsrequired.• We are resolved to ensure long-term fiscalsustainability and price stability and will put in place credible exitstrategies from the measures that need to be taken now to support thefinancial sector and restore global demand. We are convinced that byimplementing our agreed policies we will limit the longer-term costs toour economies, thereby reducing the scale of the fiscal consolidationnecessary over the longer term.• We will conduct all our economicpolicies cooperatively and responsibly with regard to the impact onother countries and will refrain from competitive devaluation of ourcurrencies and promote a stable and well-functioning internationalmonetary system. We will support, now and in the future, to candid,even-handed, and independent IMF surveillance of our economies andfinancial sectors, of the impact of our policies on others, and ofrisks facing the global economy.Strengthening financial supervision and regulation•Major failures in the financial sector and in financial regulation andsupervision were fundamental causes of the crisis. Confidence will notbe restored until we rebuild trust in our financial system. We willtake action to build a stronger, more globally consistent, supervisoryand regulatory framework for the future financial sector, which willsupport sustainable global growth and serve the needs of business andcitizens.• We each agree to ensure our domestic regulatory systemsare strong. But we also agree to establish the much greater consistencyand systematic cooperation between countries, and the framework ofinternationally agreed high standards, that a global financial systemrequires. Strengthened regulation and supervision must promotepropriety, integrity and transparency; guard against risk across thefinancial system; dampen rather than amplify the financial and economiccycle; reduce reliance on inappropriately risky sources of financing;and discourage excessive risk-taking. Regulators and supervisors mustprotect consumers and investors, support market discipline, avoidadverse impacts on other countries, reduce the scope for regulatoryarbitrage, support competition and dynamism, and keep pace withinnovation in the marketplace.• To this end we are implementing theAction Plan agreed at our last meeting, as set out in the attachedprogress report. We have today also issued a Declaration, Strengtheningthe Financial System. In particular we agree:* to establish a newFinancial Stability Board (FSB) with a strengthened mandate, as asuccessor to the Financial Stability Forum (FSF), including all G20countries, FSF members, Spain, and the European Commission;* thatthe FSB should collaborate with the IMF to provide early warning ofmacroeconomic and financial risks and the actions needed to addressthem;* to reshape our regulatory systems so that our authorities are able to identify and take account of macro-prudential risks;*to extend regulation and oversight to all systemically importantfinancial institutions, instruments and markets. This will include, forthe first time, systemically important hedge funds;* to endorse andimplement the FSF's tough new principles on pay and compensation and tosupport sustainable compensation schemes and the corporate socialresponsibility of all firms;* to take action, once recovery isassured, to improve the quality, quantity, and internationalconsistency of capital in the banking system. In future, regulationmust prevent excessive leverage and require buffers of resources to bebuilt up in good times;* to take action against non-cooperativejurisdictions, including tax havens. We stand ready to deploy sanctionsto protect our public finances and financial systems. The era ofbanking secrecy is over. We note that the OECD has today published alist of countries assessed by the Global Forum against theinternational standard for exchange of tax information;* to call onthe accounting standard setters to work urgently with supervisors andregulators to improve standards on valuation and provisioning andachieve a single set of high-quality global accounting standards; and*to extend regulatory oversight and registration to Credit RatingAgencies to ensure they meet the international code of good practice,particularly to prevent unacceptable conflicts of interest.• Weinstruct our Finance Ministers to complete the implementation of thesedecisions in line with the timetable set out in the Action Plan. Wehave asked the FSB and the IMF to monitor progress, working with theFinancial Action Taskforce and other relevant bodies, and to provide areport to the next meeting of our Finance Ministers in Scotland inNovember.Strengthening our global financial institutions•Emerging markets and developing countries, which have been the engineof recent world growth, are also now facing challenges which are addingto the current downturn in the global economy. It is imperative forglobal confidence and economic recovery that capital continues to flowto them. This will require a substantial strengthening of theinternational financial institutions, particularly the IMF. We havetherefore agreed today to make available an additional $850 billion ofresources through the global financial institutions to support growthin emerging market and developing countries by helping to financecounter-cyclical spending, bank recapitalisation, infrastructure, tradefinance, balance of payments support, debt rollover, and socialsupport. To this end:* we have agreed to increase the resourcesavailable to the IMF through immediate financing from members of $250billion, subsequently incorporated into an expanded and more flexibleNew Arrangements to Borrow, increased by up to $500 billion, and toconsider market borrowing if necessary; and* we support asubstantial increase in lending of at least $100 billion by theMultilateral Development Banks (MDBs), including to low incomecountries, and ensure that all MDBs, including have the appropriatecapital.• It is essential that these resources can be usedeffectively and flexibly to support growth. We welcome in this respectthe progress made by the IMF with its new Flexible Credit Line (FCL)and its reformed lending and conditionality framework which will enablethe IMF to ensure that its facilities address effectively theunderlying causes of countries' balance of payments financing needs,particularly the withdrawal of external capital flows to the bankingand corporate sectors. We support Mexico 's decision to seek an FCLarrangement.
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