A communiqué draft released by the Group of 20 economic world powers yesterday has cautioned that the ongoing global recovery is still fragile as showcased by recent volatility in the financial markets.

Dow Jones Newswires has reported that the G20 nations are calling for close international cooperation to effectively face the economic uncertainties, emphasising that the world should "remain in the constant state of alertness; closely monitoring the economy, continuously pursuing well-coordinated economic policies and standing ready to do whatever else is necessary to ensure global financial stability."

The same report said that G20 finance ministers and central bankers are set to finalise the draft statement once they meet this weekend in Busan, South Korea, though Korean government officials have yet to confirm the report.

The G20 meet comes in the heels of the eurozone debt crisis threatening to squander the worldwide economic recovery as countries are hard pressed to slash ballooning budget deficits.

The Dow Jones report said that the draft document has left out any indications that agreements on bank levy payment would materialise to pay for future financial sector bailouts, as it stressed that G20 members "agreed to develop, with input from the IMF (International Monetary Fund), a set of principles on how the financial sector could make a fair and substantial contribution to the cost of cleaning up after financial crises."

The proposed levy is being pushed by the United States and some European countries but Canada and Australia have raised objections, balking at the idea of paying for a fiscal problem that they did not create to begin with.

The Dow Jones report said that the draft also stated that the present financial crisis has underscored the "importance of sustainable public finances and the need for countries with serious fiscal challenges to expeditiously pursue credible, coordinated, growth-friendly and tailored fiscal consolidation."

The scheduled Friday and Saturday meetings would serve precursors for another round of a G20 summit set in Toronto, Canada on June 26 to 27, with the leading developed and developing nations expected to attend.