G20 summit: leaders on brink of $1 trillion rescue deal
World leaders are poised to agree a $1 trillion (£683 billion)
rescue fund for the global economy at today’s G20 summit in London.
The money will be used to help struggling economies and is intended to help boost the global economy and trade.
The agreement is expected to form the centerpiece of the G20 communique set to be unveiled by Gordon Brown, the British Prime Minister, and other world leaders today.
However, critics will claim that the agreement has proved less ground-breaking and historic than the Prime Minister had hoped. Leaders have failed to agree on plans for a new globally-coordinated fiscal stimulus package.
Proposals for radical reform of the global regulation of the financial system have also been watered down.
However, as revealed by The Daily Telegraph, a new global crackdown on pay and bonuses for bankers is to be announced. Hedge funds which are considered a potential threat to the stability of markets will also be regulated in future.
Under the global rescue package, the International Monetary Fund (IMF) is expected to be given an extra $500 billion (£341 billion) which will be lent to countries whose economies run into trouble. The IMF may also be given permission to begin selling its gold reserves.
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