Global leaders at the G20 financial summit in Washington have pledged to work together to restore global growth.
Global leaders at the G20 financial summit in Washington have pledged to work together to restore global growth.
President George Bush said that finance minsters would now work on detailed reform proposals and report back.
They said they were determined to work together to achieve "needed reforms" in the world's financial systems.
The actions countries were taking were "beginning to work" in dealing with the financial crisis, said the president.
Britain's Prime Minster, Gordon Brown, said the agreements reached by leaders were "historic".
In their communique, the leaders said they were determined to work together to achieve "needed reforms" in the world's financial systems.
US President George Bush said that finance minsters would now work on detailed reform proposals, and then report back.
"We are adapting our financial systems to the realities of the 21st century," said Mr Bush in his address at the end of the summit.
The meeting brought together leading industrial powers, such as the US, Japan and Germany, and also emerging market countries such as China, India and Brazil - representing 85% of the world economy.
At the meeting in Washington, leaders pledged to "lay the foundation for reform to help to ensure that a global crisis, such as this one, does not happen again".
Key issues agreed by world leaders at this summit included:
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reform
of international financial institutions such as the World Bank and the International Monetary Fund
an
agreement by the end of 2008, leading to a successful global free-trade deal
improvements
to financial market transparency and ensuring complete and accurate disclosure by firms of their financial conditions
making
sure banks and financial institutions' incentives should "prevent excessive risk taking"
asking
finance ministers to draw-up a list of financial institutions whose collapse would endanger the global economic system
strengthening
countries' financial regulatory regimes
taking
a "fresh look" at rules that govern market manipulation and fraud.
Trade deal
At their meeting in Washington, leaders pledged to "lay the foundation for reform to help to ensure that a global crisis, such as this one, does not happen again".
At the same time, the summit has reportedly decided to aim for a new agreement on global free-trade - within weeks.
Brazil's foreign minister, Celso Amorim said the G20 financial summit would set a tight target date for a deal.
Mr Amorim said the G20 leaders in Washington wanted to reach agreement on the talks "by the end of the year".
Supporters of a deal say reducing trade barriers would help countries which depend on exports - at a time when the economic slowdown is affecting trade.
The Doha round of trade talks was launched in 2001 but broke down because of disputes, largely between developing and industrialised nations.
Mr Amorim told reporters that a communique had been agreed "which makes a clear reference to the Doha round including the idea of a target date... by the end of the year."
HAVE YOUR SAY Everyone is affected by this downfall. Budgets of households and big corporations are equally affected Asif Chaudhry, Pakistan Send us your comments
HAVE YOUR SAY Everyone is affected by this downfall. Budgets of households and big corporations are equally affected Asif Chaudhry, Pakistan Send us your comments
Danny Leipziger, of the World Bank, told the BBC a global trade deal was "of paramount importance".
In his address at the end of the summit, Mr Bush said there was no doubt that the financial crisis facing the United States and many other countries was a severe one.
He said the talks were "close" to a satisfactory conclusion.
He said it had even been conceivable that the US "could go into a depression greater than the Great Depression".
Leaders from 19 of the world's biggest economies - and the European Union - were at the Washington summit.
"We are adapting our financial systems to the realities of the 21st century," he said.
The meeting brought together leading industrial powers, such as the US, Japan and Germany, and emerging market countries such as China, India and Brazil - representing 85% of the world economy.
Speaking after the summit, the UK's Mr Brown, said the group had reached important conclusions "about trade, about financial stability and about the expansion of our economies".
Saturday's meeting is expected to pave the way for another summit in April next year.
But in their joint closing statement, leaders said the reforms would only be successful, if they were "grounded in a commitment to free market principles".
Later meetings are expected to focus on working out the details of the reforms needed.
G20 leaders say they will meet again by 30 April, 2009, to review progress.
The G20 group of countries consists of 19 leading industrialised and developing countries, as well as the European Union.
