Turkey's Economy Minister Mehmet Şimşek has recommended that the Group of 20 (G-20) -- which includes 19 of the world's largest economies -- and the European Union adopt a mechanism devised by the Central Bank of Turkey as a tool to cope with the ongoing global crisis.

The central bank has recently introduced a system allowing banks to borrow foreign currencies from each other, a system of financial intermediation between banks to establish better control of their foreign exchange reserves.

This system was in effect during the 2001 financial crisis but was terminated in 2002 when it was no longer needed.

Şimşek was speaking at the G-20 meeting as part of the annual meeting of the International Monetary Fund (IMF) and the World Bank Group in Washington on Saturday. US President George W. Bush presided over the one-hour-long discussion.

Şimşek's advice was timely because almost all attempts by the international community have proven ineffective in stemming the crisis. Central banks around the world have stepped up their efforts by either injecting billions into the system, financing huge bailouts to rescue big banks from collapse, by standing poised to purchase toxic debts consisting primarily of sub-prime mortgages and most recently, in a concerted effort, slashing interest rates. These measures, however, were only able to provide temporary relief to markets.

The Central Bank of Turkey's system envisages that Turkish banks lend foreign currency to other banks in need, instead of releasing it into foreign exchange markets. It aims to help decrease the foreign exchange deficit in markets. This will assist Turkish banks as long as banks are able to find foreign money at low interest rates.

Meanwhile, Turkish demands that the G-20 play a more active role in dealing with the crisis were supported by the US. Speaking to the open G-20 meeting, Bush said international cooperation was a sine qua non to overcoming the crisis and underlined that the US is determined to decisively implement its $700 billion rescue plan.

Bush acknowledges that the problems began in the United States, with a meltdown of the sub-prime mortgage market in mid-2007, White House spokesman Tony Fratto said. However, Bush felt that it was important to take the rare step of attending such a meeting because the problem is spreading globally. "It doesn't matter if you're a rich country or a poor country, a developed country or a developing country, we're all in this together," Fratto quoted Bush as saying. "We take this seriously, and we want to work with you," Bush assured the ministers, according to Fratto.

In a joint statement the G-20 finance officials pledged to work together "to overcome the financial turmoil, and to deepen cooperation to improve the regulation, supervision and the overall functioning of the world's financial markets."

Other speakers at a policy meeting of the IMF echoed Bush in emphasizing the need for countries to work together to address the crisis, avoiding the go-it-alone protectionist trade strategies that worsened conditions during the 1930s. "There is a resolve in the international community that this crisis will be resolved, that no tools will be spared to address its ramifications," said Youssef Boutros Ghali, Egypt's finance minister and the new chairman of the policy panel.

Şimşek later attended at a round-table meeting -- including only ministers from IMF member countries -- to discuss current global issues, especially the financial meltdown. He also attended a meeting with a delegate from the Japan Bank for International Cooperation (JBIC) and one with investors interested in the Turkish markets, where he delivered a speech about expectations pertaining to the Turkish economy.

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