BBC Home
Explore the BBC

CBBC

World

Last Updated: Thursday April 02 2009 16:00 GMT

Deal agreed to solve cash crisis

World leaders at the G20 summit

World leaders agree cash crisis deal

The leaders of the richest countries in the world have agreed on a number of ideas at a big meeting in London to try to solve the global cash problems.

Those countries have agreed to spend almost £700bn ($1 trillion) on a series of plans to make things better.

The world leaders of the 20 richest countries in the world, called the G20, are in London for the meeting.

Most of the money will go to a special international bank that lends money to countries when they really need it.

The sum of money they're talking about, $1 trillion, is so big that it's pretty hard to understand.

It's the same as one million lots of $1m, or 1,000 lots of $1bn.

Michelle Obama

Michelle Obama visits a school in London

Another big chunk of the cash - £170bn ($250bn) - has been put aside to help companies and countries around the world buy and sell things to each other.

As well as the agreement to spend the money, the world leaders have agreed on a number of other ideas to improve things:

Some of these are:

• New rules what banks can and can't do, that will be the same all around the world

• Controls on the amount of money people working in banks are allowed to earn

• Tougher rules on the way some banks make money

• The world's poorest countries will get extra financial help

The British Prime Minister organised the meeting, and it was his job to explain to everyone what the G20 countries have agreed.

Speaking at the G20 meeting he said: "This is the day that the world came together to fight back against the global recession, not with words, but with a plan for global recovery and for reform and with a clear timetable for its delivery."

Mr Brown added that there was "no quick fix" for the world economy but there was a commitment to do whatever was necessary.