G-20 to discuss global economy, financial sector reforms

Finance ministers and central bank heads from the world's biggest economies is meeting in Busan, South Korea, this week, to try to shore up a fragile global recovery now threatened by the euro zone debt crisis.

During the two-day meeting fron 4 to 6 June, the G-20 finance ministers are expected to review the recovery of global economy and suggest a strong framework for sustainable and balanced growth.

The discussions would include financial sector regulatory reforms, international financial institutions reforms and global financial safety nets among others.

The meeting is expected to discuss measures to make banks accountable by making them pay for future bailouts of the sector so that they can no longer take for granted that help will always be there.

The International Monetary Fund has proposed two new taxes on banks - a financial stability contribution (FSC) to be linked to a resolution mechanism to pay for the fiscal cost of any future government support to the sector and a financial activities tax (FAT) levied on the profits and remuneration of financial institutions for any further contributions, if desired.

Other issues likely to dominate in the meeting include energy subsidy, fossil fuel subsidies and financial inclusion etc.