World unveils plan to fight crisis

Washington: Leaders of the world's biggest economies sought on Saturday to settle their differences over an emergency plan to blunt the bite of the worst financial crisis in decades.

Presidents and prime ministers from the powers of the 20th century joined the heads of new economic heavyweights such as China and Saudi Arabia for a five-hour meeting in a Washington museum, gathered around a large map of the world symbolising the global nature of their attempted economic rescue plan.

Signs are mounting of a painful economic slump in many regions, with the euro zone slipping into recession according to data last week, unemployment climbing in the United States, automobile makers struggling in Europe and the US and emerging economies slowing.

As the meeting got under way, the International Monetary Fund agreed to a loan worth at least $7.6 billion as part of a bigger plan for Pakistan where foreign currency reserves have dwindled and the risk of a default on its debts has grown.

French officials said the G20 leaders, whose countries represent 85 per cent of the world economy, were to commit in a communique to three principles: stimulus efforts, reform of financial regulation and global governance changes.

President George W. Bush, the US leader hosting the emergency talks of the Group of 20 nations, warned against a relapse into trade protectionism.

Highlights: Quick action for growth

Leaders at the G20 summit laid out a broad framework for further discussions on market reforms. The actions under discussion include:

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