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G-20 Ministers Promise to Preserve Economic Recovery


Finance ministers from both rich and developing countries are promising they will not let a global fragile economic recovery collapse.

The ministers from the Group of 20 nations, known as the G-20, concluded a critical meeting in London Saturday, agreeing on the need to continue spending money to stimulate economic growth - and the need to reform world economic institutions - like the International Monetary Fund and the World Bank - to better represent developing economies.

The two-day meeting comes as G-20 heads of state prepare for a critical summit in the eastern U.S. city of Pittsburgh later this month.

There have been numerous indications that the world is pulling out of its deepest recession since World War Two. But United States Treasury Secretary Timothy Geithner says the world must still confront "significant challenges."

Differences also remain over how to reform a banking system that rewarded top bank executives with large salary bonuses, even though many of their decisions help spark the financial crisis.

Germany and France have been calling for hard limits, or caps, on how much bank executives can be paid. But both the U.S. and Britain have resisted that approach, instead favoring measures that would connect compensation to how profitable banks are over a period of time.

The U.S. is also pushing for a plan that would require banks that take on more risky investments to put more cash into reserve in case the investments fail.

The issue is expected to come up again on September 17, when Sweden's prime minister has invited European Union leaders to meet and discuss bank bonuses before the G-20 summit.

Some information for this report was provided by AFP, AP and Reuters.


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