A meeting of G10 central bankers in Switzerland yesterday urged Russia and Japan to make clear-cut policy decisions that would restore investor confidence, the Bundesbank president, Mr Hans Tietmeyer, said.

He said they also praised the "courageous" actions of Latin American countries which had taken tough measures to encourage stability and recovery, and stated that Europe was heading for growth without inflation.

Speaking after the governors met at the headquarters of the Bank for International Settlements (BIS), Mr Tietmeyer said "we hope Russia will be able to take appropriate policy to bring the country back to positive economy development".

However, he added that the bankers were aware of the problems in Russia. The new Russian Prime Minister, Mr Yevgeni Primakov, has made the lot of ordinary Russian citizens a priority and has introduced anti-reformist Communists into his cabinet.

On Japan, the G10 bank governors "hope that a confidence-creating decision can be done - will be done - in a short time," Mr Tietmeyer said, noting that measures had already been taken to address weaknesses in the country's financial system.

The governors also stressed that several emerging countries had taken tough, but positive, measures to encourage stability and recovery, but "the potential impact of these measures has in the last weeks not always been given appropriate recognition". The markets should take account of the political decisions taken by several countries, he said, referring to Latin America which has been hit by speculation even though many governments are applying rigorous programmes.

The group also came out in support of the International Monetary Fund's surveillance role, and stressed the need for it "in special cases to give financial support".