U.S. Treasury Secretary Timothy Geithner, left, chats with IMF MD Dominique Strauss-Kahn during a break in the G-20 Finance Ministers and Central Bank Governors Meeting in Busan, South Korea Saturday, June 5, 2010.

Busan, South Korea – All the financial leaders from across the globe pledged to move ahead on curbing deficits while crafting out the financial reforms in the wake of recovering the plunging global economy, on Saturday.

The group of 20 countries welcomed the economic measures taken up by the European Union, the European Central Bank and the IMF, that include the $1 trillion bailout to cope up with the current financial breakdown in the eurozone.

Various finance ministers and the heads of the central banks gathered around in the city to have serious discussions on building safety nets for the countries that are badly stricken by the debt crises, while making the banks bear much of the financial burden for the government bailouts.

The U.S. Treasury Secretary Timothy Geithner told the reporters on Saturday after the big meeting that all the financial bodies have the strong interest in seeing the safety measures succeed in restoring back the lost confidence and this can be effectively done by rebalancing growth for the long term and sustainable growth.

He further added that the US is aggressively moving to fix things and to strengthen the global economic fundamentals, and this kind of approach is expected by other countries to generate more growth all over.

In fact, Europe’s sovereign debt crisis has already sharpened the worries that the global economy might take a downturn, especially after the Hungary’s warning this week of its own meltdown like Greece.

The G-20 participants stressed on restoring the “fiscal sustainability”, and the talks in Busan have given the way to prepare an agenda for a meeting of all the G-20 leaders including US President Barack Obama, in Canada, this month end. In the wake of the global recession, all the advanced and the emerging economies of the G-20 has charted down the key priorities in setting a group to recover the global economy, from the Group of the Seven Industrialized nations.

The finance ministers are already working on the financial reforms that would help in combating financial meltdown that led to recession. Geithner stressed on the need to move ahead on stronger capital reserve requirements for banks and the limits on indebtedness so that banks and other financial institutions could figure the future financial crises well in advance.

[Source – AP]