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At a G20 summit, they also signed off on plans to commission blacklists of tax havens and tighten financial rules to bring hedge funds and credit rating agencies under closer supervision.
"This is the day that the world came together, to fight back against the global recession. Not with words but a plan for global recovery and for reform and with a clear timetable," British Prime Minister Gordon Brown, the summit host, said.
World markets reacted positively. The index of top European shares was up 5 per cent after Japan's Nikkei gained 4.4 per cent. On Wall Street, the Nasdaq was up 4 per cent and the Dow Jones 3.6 per cent.
Brown said that while there were "no quick fixes", the decisions meant that "we can shorten the recession and we can save jobs."
French President Nicolas Sarkozy said the results were beyond what could have been imagined.
Addressing a key demand from France and Germany, Brown said the leaders agreed "there will be an end to tax havens that do not transfer information on request. The banking secrecy of the past must come to an end."
He said leaders agreed to commit new resources of 1 trillion dollars that are available to the world economy through the International Monetary Fund and other institutions.
This included 250 billion dollars of IMF reserve units called Special Drawing Rights. "This is available to all IMF members," Brown said. In addition, the IMF would see its own resources tripled, with up to $500 billion of new funds.
The G20 also agreed a trade finance package worth $250 billion over two years to support global trade flows.
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banking secrecy seems impossible
Since the G20 leaders agreed to end the Banking Secrecy, Dr. Manmohan singh should ask the Swiss Banks to disclose the money that the corrupt politicians of our country have kept with them. But I doubt very much that this will happen since Congress is the largest corrupt party in our country.
Rightly said Mr. Suresh. We oftenly play this blame game. Congress is corrupt and Bjp is worse!! But you tell me, do you pay all the taxes, no I can bet on that. Check yourself out and then whine and complain. Change in pereption is needed. We are responsible!!
The world did not get together.20 Human Beings did.
Although the intent is noble the planning and execution is highly doubtful. Any organization with the name "International" is well know for its dubious functioning. Prime example is the UN. It's one of the most corrupt and spineless organization ever. Then there is International Red Cross Society which is currently under investigation for $3 billion corruption scandal. And then we have IMF. There are numerous research articles on the web which tells us that World Bank and IMF are bad for the developing nations. IMF is also an Euro-centric organization. So after getting $1 Trillion who knows where it'll go since there'll be no accountability.
The US and NATO could save up to one trillion dollars by putting an end to the hand out to the sponsors of terroism lead by Pakistan.