by Calculated Risk on 3/14/2009 03:22:00 PM

Here is the G20 statement. Excerpt:

Our key priority now is to restore lending by tackling, where needed, problems in the financial system head on, through continued liquidity support, bank recapitalisation and dealing with impaired assets, through a common framework (attached). We reaffirm our commitment to take all necessary actions to ensure the soundness of systemically important institutions.

And from the "common framework":

We, the G20 Finance Ministers and Central Bank Governors, agreed the need to continue working together to maintain and support lending in our financial systems. We are committed to taking decisive action, where needed, and to use all available tools to restore the full functioning of financial markets, and in particular to underpin the flow of credit, both domestically and globally.

Actions to achieve this may include where necessary:

providing liquidity support, including through government guarantees to financial institutions’ liabilities;

injecting capital into financial institutions;

protecting savings and deposits; and,

strengthening banks’ balance sheets, including through dealing with impaired assets.

Our key priority now is to address the uncertainties around the value of assets held on banks’ balance sheets, which are significantly constraining banks’ lending. This uncertainty, and the extent to which banks are holding capital to protect themselves from further potential extreme losses, is preventing them from restoring lending to business and households, with damaging consequences to our economies.
emphasis added

The rest is general, but it keeps coming back to how to value the toxic assets on the banks' balance sheets.