G20 finance chiefs agree to intensify cooperation to tackle global crisis

SEOUL, Sept. 23 (Yonhap) -- Finance chiefs of the leading 20 countries have agreed to intensify cooperation to tackle the global economic crisis, stemming from deepening anxiety over fiscal soundness and stagnant economic recovery in Europe and other major advanced countries.

The leaders promised to carry out "credible" plans aimed at enhancing fiscal health and push for strong, sustainable and balanced economic growth.

The agreement was reached during a meeting of the Group of 20 (G20) finance ministers and central bankers in Washington Thursday (local time). It was announced in a communique adopted by each participating country.

"We, the finance ministers and central bank governors of the G20, are committed to a strong and coordinated international response to address the renewed challenges facing the global economy," read the communique distributed via e-mail to reporters by the finance ministry here on Friday.

To achieve those goals, G20 countries will prepare "action plans" before November, when their leaders are to meet in France for summit talks. The plans will comprise of measures that take into account both short- and long-term policy perspectives, the ministry said.

Central bankers who attended the G20 meeting agreed to keep providing liquidity to their countries' banks in a bid to stabilize banking systems and the overall financial markets.

"We commit to take all necessary actions to preserve the stability of banking systems and financial markets as required. We will ensure that banks are adequately capitalized and have sufficient access to funding to deal with current risks," they said.

"Central Banks will continue to stand ready to provide liquidity to banks as required. Monetary policies will maintain price stability and continue to support economic recovery," they added.

The meeting comes as market jitters deepen over the eurozone fiscal debt crisis and a slowing economic recovery in the United States and other major economies.

Worries over slowing economic recovery in other major countries, including the United States, are amplifying market uncertainty, causing global financial markets to go through tumultuous trading.

The first G20 summit meeting was held in Washington in November 2008 after the world was hurled into financial chaos following the collapse of U.S. investment giant Lehman Brothers. Since then, it has served as a platform for the leaders of the leading countries to discuss how to survive worldwide turbulence.

South Korea remains part of the "G20 Troika," comprised of past, present and future chairs of the grouping. Seoul hosted the gathering in November of last year and France is to chair this year's meeting in Cannes in November.