Updated at: 1705 PST, Tuesday, January 19, 2010
WASHINGTON: The International Monetary Fund warned Saturday that debt-ridden banks were pushing the global financial system to the brink of meltdown and wealthy nations had so far failed to restore confidence.
The IMF's policy setting panel said the economic crisis is so deep and widespread that it will require a willingness to take bold action.
Meanwhile, global finance ministers kept searching for ways to tackle the unfolding financial crisis, turning their attention to its effects on rapidly developing countries and poor nations at risk of being swept up in the turmoil.
The Group of 20 nations, which includes the world's wealthiest nations and the largest developing countries such as China, Brazil and India, issued a joint statement late Saturday night stressing their resolve to work together to overcome the current financial turmoil.
"Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown," IMF chief Dominique Strauss-Kahn said.
The IMF endorsed a plan of action adopted Friday by the G-7 economic powers to protect the financial system and get credit flowing again.
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