Rich nations club vows to fight crisis

G7’s finance chiefs say their five point plan shows their determination to unlock global money markets, but uncertainty remains over whether it will stem the panic.

Meeting in Washington, leaders vowed to unfreeze credit and protect savers but offered no real collective action to stop global recession.

And, the finance heads stopped short of backing a British proposal to guarantee lending between banks, something many see as vital to end market turmoil.

US Treasury Secretary Henry Paulson said:“We finalised an aggressive action plan to address the turmoil in the global financial markets and the stresses on our financial institutions. This action plan provides a coherent framework that will direct our individual and collective policy steps to provide liquidity to markets, strength in financial institutions, protect savers, and enforce investor protections.”

This Sunday, European heads meet in Paris to discuss further measures as they attempt to grapple with the problem hitting world markets.