British Prime Minister Gordon Brown on Sunday called for billions of dollars in extra funding for the International Monetary Fund to prop up struggling economies, while Premier Wen Jiabao said maintaining China's strong domestic growth was his top priority.
Leaders from Mumbai to
"If we are to stop the spread of the financial crisis, we need a better global insurance policy to help distressed economies," Brown said.
Chinese Premier Wen, writing in the ruling Communist Party's ideological journal, warned of growing domestic social risks from a global economic downturn.
"Against the current international financial and economic turmoil, we must give even greater priority to maintaining our country's steady and relatively fast economic development," Wen wrote in Seeking Truth (Qiushi).
"We must be crystal-clear that without a certain pace of economic growth, there will be difficulties with employment, fiscal revenues and social development...and factors damaging social stability will grow."
"KNOCK-ON EFFECTS" IN
Analysts said the surprise move showed Indian concern that strains on its economy were quickly becoming more severe.
"These actions were necessary (and had) to be taken on the liquidity front ... the situation was getting worse," said Vikas Agarwal, a strategist at JP Morgan.
The central bank cut the repo rate, its main short-term lending rate, by 0.5 percentage point to 7.5 percent and banks' cash reserve requirements by 1 percentage point to 5.5 percent.
"The global financial turmoil has had knock-on effects on our financial markets; this has reinforced the importance of focusing on preserving financial stability," the bank said.
Policymakers around the world have slashed interest rates in recent weeks and injected huge amounts into their banking systems to try to combat the spillover effects of the global crisis, which has caused credit markets to freeze up and threatens to plunge the world economy into recession.
"There does not seem to be a likelihood of the unrest in domestic financial markets that originated in the international financial markets developing into a crisis for the Korean financial system as a whole," the Bank of Korea said in a scheduled report.
Banks everywhere have been racing to shore up their balance sheets after a spate of collapses and hastily arranged mergers prompted by heavy losses from bad mortgages and financial derivatives related to them.
"As long as they play by our rules and operate in a commercial manner, we welcome investment from sovereign wealth funds in the
Brown's tour of the Gulf precedes a global summit in
RUSSIA, GERMANY UP EFFORTS
On Saturday, Russia's Finance Ministry said it placed 170 billion roubles ($6.41 billion) from its National Wealth Fund with state bank VEB as part of a plan to allow for state purchases of shares and corporate bonds.
The news of state share purchases helped Russian shares rise sharply, lifting them to a 50 percent gain for the week. Shares were trading on Saturday because Monday and Tuesday are public holidays.
Also on Saturday,
The global crisis has overshadowed the election to find a successor for U.S. President George W. Bush, who leaves office in January. Republican John McCain and Democrat Barack Obama swept through battleground states on Saturday in a last-minute push before Tuesday's vote.
The developments in the worst financial crisis in eight decades followed signs in the past week that world markets were stabilizing, with interbank rates falling and