G20 leaders to meet in Washington on Nov 15 to tackle financial crisis
Posted: 22 October 2008 2358 hrs

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WASHINGTON: A summit on the global financial crisis will be held on November 15 in Washington and will gather leaders of the G20 countries to draw up an action plan, the White House said on Wednesday.

"The president today is going to invite the leaders of a group of 20 countries ... to a summit in Washington DC," on November 15 "to discuss the financial markets and the global economy," White House spokeswoman Dana Perino told reporters.

"The leaders will review progress being made to address the current financial crisis, advance a common understanding of its causes and in order to avoid a repetition, agree on a common set of principles for reform of the regulatory and institutional regimes for the world's financial sectors," she said.

Such conferences are usually planned a year in advance but the crisis has required a rapid response, Perino said.

On the eve of the summit, President George W. Bush will host the leaders of the group of rich and emerging economies for a dinner at the White House.

The leaders will create working groups to draw up policy recommendations that would be considered by leaders at a future summit, said a senior administration official, who spoke on condition of anonymity.

The G20 gathers the seven major industrialized countries (Britain, Canada, France, Italy, Japan, Germany and the United States) and Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey and the European Union.

Created in 1999, G20 members together account for 85 percent of the world economy.

The summit will be held after the US presidential election on November 4. The White House spokeswoman left open the question as to whether the president-elect would attend the summit.

But she said "we will look for his input after the election".

The global financial meltdown, with stock prices falling sharply and severe credit crunch, has prompted suggestions for joint action by G20 governments and reforming how the group operates.

Brazilian Finance Minister Guido Mantega said on Saturday that the Group of 20 rich and emerging countries should become a body capable of responding to international financial crises.

Brazil offered a "proposal of transformation of the G20 into a more active body ... that has a more rapid form of communication" among member countries, Mantega told a news conference.

"The crisis also is spreading to the emerging countries. We are in a global crisis that should be confronted by all governments," he said.

Australian Premier Kevin Rudd last week called for global financial regulatory reform, including curbs on executive pay that he plans to present at the summit.

Along with proposals to deter excessive executive pay packages that encourage risk, he also called for greater disclosure requirements for banks and an overhaul of the supervision of the global financial system.


- AFP/so