Washington - World leaders agreed to "substantive" measures Saturday to reform the international finance system to ensure the global economy does not suffer from another crisis caused by faulty loans and risky banking policies, US President George W Bush said Saturday.

"This was a very successful summit," Bush said at the conclusion of an emergency conference in Washington designed to stave off a rapid collapse of the world economy.

Bush hosted the gathering with the leaders of the world's 20 leading economies from six continents that produced an agreement to a set of principles for fundamentally reforming the international finance system.

Bush said the countries agreed to regulations to bring about great transparency to regain the confidence of investors, and to prevent dubious loans or hidden credit default swaps, but in a way that does not impede economic growth and free markets.

"I'm a free market person," Bush said, adding that even though nations' economies were "being hit very hard, there is a common understanding that all of us should protect pro-growth economic policies."

A record default in loans and home mortages in the United States over the last two years brought about the economic crisis that sent Wall Street tumbling in September. The financial turmoil quickly spread to global markets and prompted calls for an emergency summit to stave off further economic damage. (dpa)