World rallies to tame financial crisis

The G20 vowed to bolster stability and the European Central Bank went shopping for eurozone bonds on Monday to stem a debt crisis gone global but economists raised doubts and battered markets were knocked back down.

Finance Ministers and central bankers from the Group of 20 industrialised and emerging economies pledged to “take all necessary initiatives in a coordinated way to support financial stability and to foster stronger economic growth in a spirit of cooperation and confidence.”

Their statement came after Asian stock markets posted substantial losses while European trade saw promising gains disappear by midday, with Friday's unprecedented U.S. ratings downgrade adding to the toxic mix.

A sharply-worded editorial in the Chinese People's Daily — the mouthpiece of China's Communist Party — said Western nations threatened global prosperity by “ignoring their responsibility” to the rest of the world.

The G20 stressed that members would maintain close contact in coming weeks “and cooperate as appropriate, ready to take action to ensure financial stability and liquidity in financial markets.”

Earlier, the Group of Seven (G7) industrialised countries — Britain, Canada, France, Germany, Italy, Japan and the United States — made a similar commitment. — AFP

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