| Updated at: 1507 PST, Saturday, October 23, 2010|
GYEONGJU: G20 finance leaders have reached an accord on key reforms in the International Monetary Fund (IMF), capping a day of back-to-back negotiations over the global economic crisis.
During the fourth session of the ministerial meeting in Gyeongju in South Korea on Saturday, the Group of 20 Finance Ministers and Central Bank Governors (G20), announced a string of strict measures aimed at tackling the world's economic turmoil, including tighter rules and regulations for banks and big finance firms.
"An agreement was reached on financial regulatory reform during the fourth session that just ended," a French news agency quoted a top South Korean official as saying during the sideline meetings later in the day.
Meanwhile, IMF chief Dominique Strauss-Kahn welcomed the latest agreement, saying the "historic" deal is largely expected to entrust the developing countries with more power in the organization's decision making process.
"This makes for the biggest reform ever in the governance of the institution," Strauss-Kahn told reporters, adding the 187-member body has give the go-ahead to transfer 6 percent of votes to developing countries.
The summit was also overshadowed by the overriding issue of exchange rates and trade imbalances as US Treasury Secretary Timothy Geithner was pushing for his country's initiatives.
In his proposals, Geithner called on nations running big current-account surpluses to change their exchange-rate policies.
Speculations are rife that nations, from the US to China, are pinning their hopes on weaker exchange rates as a means of instigating economic growth.
According to a draft statement, the finance ministers have agreed to "pursue a full range of policies conducive to reducing excessive imbalances" and "maintaining current-account imbalances at sustainable levels."
The G20 was established in 1999 and is now attempting to deal with the financial and economic crisis that engulfed the globe in 2008.
The G20 members were called upon to further strengthen international cooperation.