The chief of the International Monetary Fund (IMF) on Saturday hailed the action plan agreed at the G20 summit as a significant step by the international community toward stronger cooperation.

"The most important outcome of this weekend's meeting is agreement on an action plan and the commitment of all participants to implement the plan vigorously and fully," IMF Managing Director Dominique Strauss-Kahn told a press conference.

"The IMF will give strong support to these efforts, as called for by the G20," Strauss-Kahn added.

The chief of the 185-member IMF said he was "very pleased" about the G20 leaders' strong support for the important role of the Fund in crisis management and the reform of the international financial architecture.

"In addition to helping some member countries that are facing difficult circumstances with rapid and effective support, we have also created a new short-term liquidity facility and continue to review our instruments and facilities," he said.

Noting the G20 leaders' commitment to act together to meet global macroeconomic challenges, using both monetary and fiscal policy, Strauss-Kahn said lower inflation risks provide room to ease monetary policy. This will be important, but will not be enough, he added.

"I welcome the emphasis on fiscal stimulus, which I believe is now essential to restore global growth," Strauss-Kahn said. "Each country's fiscal stimulus can be twice as effective in raising domestic output growth if its major trading partners also have a stimulus package."

At the G20 summit on Financial Markets and the Global Economy held on Saturday, the leaders agreed to an action plan of immediate and medium-term measures to cope with the financial and economic woes now gripping the world.

The tasks include strengthening transparency and accountability, enhancing sound regulation, promoting integrity in financial markets, reinforcing international cooperation, and reforming international financial institutions.

(Xinhua News Agency November 16, 2008)