G-20 puts off key decisions on aid to Europe

Officials from the world's leading economies at a meeting in Mexico City have put off for months key decisions on international aid for Europe even as they waited for more euro-zone action to fight the continent's debt crisis.

After a two-day meeting, finance ministers and central bankers from the Group of 20 advanced and developing economies indicated they anticipated an agreement on expansion of Europe's rescue fund next month.

In a joint statement, the G-20 officials said the move would provide an essential input to the ongoing consideration to mobilise resources to the International Monetary Fund.

Thanks to the lack of significant progress, discussion of new international support would now be only taken up when the G-20 ministers meet in April. Officials say, that could lead to a final, confidence-boosting agreement, at a summit of world leaders in June.

G-20 officials acknowledged that a long list of potential hurdles lay ahead. Greece would need to announce its readiness to accept conditions for its latest bailout within weeks. European officials recognised Germany was not willing to go along for raising the capacity of a euro-zone financial firewall - a rescue fund big enough to reassure markets that other troubled euro-zone economies would be able to manage their debts.

The G-20 put that down as a pre-condition for hiking IMF resources to support Europe. At the same time, officials noted that increase of oil prices, in part due to tensions with Iran, threatened to weigh down a global recovery already hurt by the European turmoil.