Members of the Group of 20 leading industrialised and developing nations said Monday they are ready to act together to stabilise financial markets and protect growth. The joint statement was released by South Korea after further sharp falls on Asian bourses following the unprecedented US credit rating downgrade by Standard and Poors.
Monday's falls followed a huge sell-off Friday caused by mounting problems in the eurozone, amid growing expectations that Italy and Spain could need a bailout. The G20 finance ministers and central bank governors affirmed a commitment to "take all necessary initiatives in a co-ordinated way to support financial stability and to foster stronger economic growth in a spirit of co-operation and confidence". They said they would stay in close contact in coming weeks "and cooperate as appropriate, ready to take action to ensure financial stability and liquidity in financial markets".