G20 Summit draft communique

LONDON, April 2 (Reuters) - G20 leaders of the world's largest developed and emerging economies are due to agree on Thursday to a major plan for restoring global growth and rebuilding a financial system, ravaged by the worst financial crisis since the 1930s.

Here are key points in the G20 communique draft, a copy of which was obtained by Reuters from delegation officials attending the summit.

1. Steps for restoring growth and jobs

- Fiscal Measures: The draft noted that "an unprecedented and concerted fiscal expansion" is underway but made no specific commitments for extra stimulus, beyond saying: "We are committed to deliver the scale of sustained effort necessary to restore growth."

The U.S., Britain and Japan had sought more government spending.

- Monetary and financial: Noted central banks have cut rate cuts aggressively, have pledged to undertake unconventional measures as long as needed, and that governments are supporting their banking systems -- all of which will help support a return to growth. "We are committed to take whatever action is necessary to achieve this outcome and we call on the IMF to assess the actions taken and the actions required."

- FX policies: "We will conduct all our economic policies cooperatively and responsibly with regard to the impact on other countries and will refrain from competitive devaluation of our currencies." They also commited to "candid, even-handed and independent" assessments by the IMF on these matters.

- Exit strategies: wary of inflationary concerns, they pledged to put in place credible exit strategies from the fiscal measures and support for the banking and financial sector.

2. Financial regulation:

- New Financial Stability Board with new powers to replace the Financial Stability Forum. It will work with the IMF "to identify and report on macroeconommic and financial risks and actions needed to address them".

- Financial markets: extend regulation or oversight to all market, instruments and major institutions. "This will include for the first time systemically important hedge funds."

- Pay: implement the FSF tough new principles on pay and compensation in significant financial institutions

- Tax havens: Vowed to identify locations that are failing to cooperate, including tax havens, and to use sanctions against them.

- Accounting standards: work urgently on improving valuation of assets, provisions against losses, and one set of high-quality global standards

- Credit ratings agencies: to register and be regulated

3. Global financial institutions:

- IMF: agreed to make additional resources available to the IMF through temporary funding from member countries, but no figures were included in the draft. It also said that it would support a general Special Drawing Rights allocation to inject money into the world economy. Figures were omitted.

- Emerging economies must have a greater voice and votes on international financial institutions by January 2011.

4. Protectionism, global trade, climate change:

- Extended for 12 months pledges made last November not to raise new trade barriers and rectify promptly any such measures

- World Trade Organisation to report quarterly on any measures that do or could cause trade distortions

- Trade finance expanded. No sum included

- Use fiscal stimulus funds to invest in green technologies and reaffirm pledge to reaching a climate change accord at the Copenhagen summit in December. (Editing by Mike Peacock)

Source: Alibaba