(RTTNews) - The G7 group of world financial powers said Monday that it was committed to protecting the international financial system. The announcement was meant to provide assurances in the wake of last week’s turmoil in the financial markets, when central bankers were forced to inject liquidity and regulators created temporary measures to stem a selling stampede in equity markets.

The Group of Seven Finance Ministers and Central Bank Governors, which includes representatives from countries with the biggest economic influence on the world, also said that it supported a plan by the U.S. government to remove bad mortgage-related assets from financial institutions.

“We strongly welcome the extraordinary actions taken by the United States to enhance the stability of financial markets and address credit concerns, especially through its plan to implement a program to remove illiquid assets that are destabilizing financial institutions,” the G7 said in a statement.

The announcement followed a conference call held by the organization to discuss global financial markets.

“We pledge to enhance international cooperation to address the ongoing challenges in the global economy and world markets and maintain heightened close cooperation between Finance Ministries, Central Banks and regulators,” the G7 also stated.

Some details of the Bush administration’s $700 billion proposal for removing bad mortgage-related assets from financial institutions were revealed over the weekend, but there are concerns that Congress will hold up the proposal in order to tack on other programs.

On Sunday, Treasury Secretary Henry Paulson urged Congress to move quickly on a massive bailout plan designed to tackle the worst banking crisis since the Great Depression.

Making the rounds on network television, Paulson stressed that the government rescue package was in the best interest of the American taxpayer. Blaming excessive and over-complex mortgages for the subprime meltdown, Paulson said that new regulation and policies were needed to avoid similar mistakes in the future.

Paulson’s proposal followed a turbulent week for Wall Street. News that Lehman Brothers had declared bankruptcy and that insurance giant AIG had avoided the same fate only through a loan from the Federal Reserve sent stocks sharply lower early in the week.

However, the news of Paulson’s plan to create an entity to acquire bad mortgage-related assets sparked a buying spree going into the weekend. Now, though, there is concern that Congress will not pass the necessary legislation in a timely manner, as wrangling has begun about what else to include in the bill.

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