G20 leaders at the summit in London

Leaders of the world’s largest economies have also vowed to tighten global financial regulation and impose sanctions against tax havens.

UK Prime Minister Gordon Brown announced the measures on behalf of the G20 at the close of the summit today.

Agreed measures
Mr Brown outlined six steps agreed by world leaders:
• Stricter controls for bankers’ pay and bonuses
• A new IMF-founded Financial Stability Board to provide early-warning outlet for financial system
• Increased regulation of hedge funds and credit ratings agencies
• Agreement on cleaning up banks’ balance sheets and toxic assets
• Implementing economic stimulus totalling $5tn by the end of 2010
• Allowing $100bn in extra aid for the world’s poorest countries.

The final numbers are: an extra $500bn for the IMF to lend to struggling economies; $250bn for trade finance; $250bn for a new IMF overdraft facility (Special Drawing Rights); $100bn for multilateral development banks to lend to poor countries; and a $6bn lending increase by the IMF for the poorest countries.

On the consensus, Mr Brown said: ‘This is the day that the world came together to fight recession. Not with words but with a plan for economic recovery and reform. In this new global age of interdependence, global problems require global solutions.’

When asked by reporters about contributions from individual countries, Mr Brown said that China contributed $40bn, the EU $100bn and Japan $100bn.

Mr Brown also downplayed the differences between countries such as Germany and France and the UK and US on fiscal stimulus packages and financial regulation that dominated the run-up to the summit.

He said: ‘The issues people thought divided us did not divide us at all.’
Another G20 summit will be held later this year to review the measures and their implementation.

The final communiqué can be read here: http://www.londonsummit.gov.uk/resources/en/PDF/final-communique