It is official! The world is out of depression - fears for a deep recession reminiscent of the 1920's is over.
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G20 finance ministers on Friday hailed a better than expected economic recovery and said it was time for plans to roll back measures taken to tackle the waning global crisis.
The ministers remained split however over support of a global bank tax, Canadian Finance Minister Jim Flaherty acknowledged after a meeting of counterparts from 20 leading developed and developing countries in Washington.
"The global recovery has progressed better than previously anticipated largely due to the G20's unprecedented and concerted policy effort," a statement released after the meeting said.
"We should all elaborate credible exit strategies from extraordinary macroeconomic and financial support measures that are tailored to individual country circumstances."
When asked at a subsequent press conference about issues on which ministers differed, Flaherty said: "There was not agreement on a global bank tax. Some countries are in favor of that, some countries quite clearly are not."
The G20 ministers asked the International Monetary Fund, which hosted the meeting, to weigh levying taxes on banks to help stem risk and pay for possible future financial failures.
The measures would consider "how the financial sector could make a fair and substantial contribution towards paying for any burdens associated with government interventions to repair the banking system," the statement said.
The IMF is set to propose two taxes, one to reimburse governments for the cost of bailing out banks hit by the crisis, and another to dissuade banks from taking excessive risks in the future.
With respect to the first levy, US Treasury Secretary Tim Geithner told a press briefing: "It's a basic sense of fairness that we adopt that basic framework."
But the G20 ministers undoubtedly face tough discussions about how to prevent the global economy lapsing back into the deep crisis caused by a financial meltdown.
IMF deputy head John Lipsky said the world lending institution had proposed plans for a tax on banks to limit risk-taking and provide funds in case another bank fails.
He said the tax would be "a fair and substantial contribution toward paying for any burdens associated with government interventions to repair the banking system."
Governments around the world spent trillions of dollars to prop up markets after risky bank investments turned sour, sending many countries deep into debt.
The new measures would see lenders and other financial institutions pay a further tax on profits and pay, a move to stem excessive risk-taking.
Flaherty said the meeting had also discussed the Greek deficit and debt crisis, saying: "It is of course a source of concern to us and we will continue to closely monitor the situation."
"It's essential that some steps be taken, that the Greek government work with the IMF and with the European Commission of course to identify a credible multi-year economic and fiscal program" to curb Athen's soaring public deficit and debt.
Greece's soaring public deficit and debt has fueled chronic instability on financial markets, undermining eurozone stability and the strength of the global economic recovery.
Ending weeks of speculation, Athens asked earlier Friday for a 45-billion-euro ($60 billion) bailout from the European Union and IMF to help the Greek government pay its bills.
Eurozone members Portugal, Italy, Ireland and Spain also risk having to pay higher rates for credit on private capital markets, and concern has been voiced regarding Britain and the United States as well.
In a bid to ease tensions, IMF chief Dominique Strauss-Kahn said the fund would move "expeditiously" to roll out the Greek bailout.
Finally, the ministers discussed how to rebalance the global economy, a task made more complex by growing differences between the recovery in emerging and advanced economies.
Brazil, China and India have emerged from the downturn in much better shape than their European, US and Japanese counterparts.
The International Monetary Fund has predicted that advanced economies will grow just over three percent this year, while emerging and developing economies will grow over six percent.
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G20 finance ministers on Friday hailed a better than expected economic recovery and said it was time for plans to roll back measures taken to tackle the waning global crisis.
The ministers remained split however over support of a global bank tax, Canadian Finance Minister Jim Flaherty acknowledged after a meeting of counterparts from 20 leading developed and developing countries in Washington.
"The global recovery has progressed better than previously anticipated largely due to the G20's unprecedented and concerted policy effort," a statement released after the meeting said.
"We should all elaborate credible exit strategies from extraordinary macroeconomic and financial support measures that are tailored to individual country circumstances."
When asked at a subsequent press conference about issues on which ministers differed, Flaherty said: "There was not agreement on a global bank tax. Some countries are in favor of that, some countries quite clearly are not."
The G20 ministers asked the International Monetary Fund, which hosted the meeting, to weigh levying taxes on banks to help stem risk and pay for possible future financial failures.
The measures would consider "how the financial sector could make a fair and substantial contribution towards paying for any burdens associated with government interventions to repair the banking system," the statement said.
The IMF is set to propose two taxes, one to reimburse governments for the cost of bailing out banks hit by the crisis, and another to dissuade banks from taking excessive risks in the future.
With respect to the first levy, US Treasury Secretary Tim Geithner told a press briefing: "It's a basic sense of fairness that we adopt that basic framework."
But the G20 ministers undoubtedly face tough discussions about how to prevent the global economy lapsing back into the deep crisis caused by a financial meltdown.
IMF deputy head John Lipsky said the world lending institution had proposed plans for a tax on banks to limit risk-taking and provide funds in case another bank fails.
He said the tax would be "a fair and substantial contribution toward paying for any burdens associated with government interventions to repair the banking system."
Governments around the world spent trillions of dollars to prop up markets after risky bank investments turned sour, sending many countries deep into debt.
The new measures would see lenders and other financial institutions pay a further tax on profits and pay, a move to stem excessive risk-taking.
Flaherty said the meeting had also discussed the Greek deficit and debt crisis, saying: "It is of course a source of concern to us and we will continue to closely monitor the situation."
"It's essential that some steps be taken, that the Greek government work with the IMF and with the European Commission of course to identify a credible multi-year economic and fiscal program" to curb Athen's soaring public deficit and debt.
Greece's soaring public deficit and debt has fueled chronic instability on financial markets, undermining eurozone stability and the strength of the global economic recovery.
Ending weeks of speculation, Athens asked earlier Friday for a 45-billion-euro ($60 billion) bailout from the European Union and IMF to help the Greek government pay its bills.
Eurozone members Portugal, Italy, Ireland and Spain also risk having to pay higher rates for credit on private capital markets, and concern has been voiced regarding Britain and the United States as well.
In a bid to ease tensions, IMF chief Dominique Strauss-Kahn said the fund would move "expeditiously" to roll out the Greek bailout.
Finally, the ministers discussed how to rebalance the global economy, a task made more complex by growing differences between the recovery in emerging and advanced economies.
Brazil, China and India have emerged from the downturn in much better shape than their European, US and Japanese counterparts.
The International Monetary Fund has predicted that advanced economies will grow just over three percent this year, while emerging and developing economies will grow over six percent.