G-20 welcome Europe's commitment to resolve debt crisis

I / Seoul May 10, 2010, 13:49 IST

Finance ministers of the Group of 20 countries today welcomed the commitment shown by European nations in preventing a sovereign debt crisis on the continent from sending the world economy into chaos.

"The G20 welcomes the commitment made by the euro area heads of state and government to use the full range of means available to ensure the stability of the euro area and the comprehensive package of measures," they said in a joint communique.

"We also welcome the measures announced by the European Central Bank today to address severe tensions in financial markets," they said. The concerted expression of support comes amid accelerating efforts to prevent fiscal crises in Greece and other debt-ridden European nations from derailing the global economic recovery.

Earlier, European Union finance ministers approved a financial rescue plan that includes large-scale emergency loans and government guarantees for new borrowing. The European Central Bank also said that it will intervene in government and private bond markets in a stabilisation effort.

Global financial markets were severely disrupted by growing jitters that the crisis in Europe could spread and bring about another global financial route.

The euro plummeted as confidence in the currency drained and investors sought safer dollar assets. South Korea's financial markets also suffered a setback last week with its local currency and stock markets losing marked ground.