Pittsburgh, Pennsylvania - US Treasury Secretary Tim Geithner said Thursday he expects the leaders of the world's leading economies to reach agreement on financial reforms at the Group of 20 summit in Pittsburgh, Pennsylvania.

There is a strong consensus on the framework of a reform, including higher capitalization of banks, reforms in executive pay and stronger regulation of hedge funds and derivates, Geithner said before the start of the two-day conference.

He urged leaders to act before the crisis is forgotten.

There had been grumblings in foreign capitals ahead of the meeting with the European Union saying it believes the US is not serious about reforming its regulatory system and needs to map out a clear "exit strategy" for its massive stimulus measures. China has concerns about Washington's skyrocketing budget deficit, which will top 11 per cent of US economic output this year.

Geithner said he has seen signs of the start of a recovery from the global recession.

This is encouraging, but we have a ways to go," he said.

Germany, France and Japan all returned to growth in the second quarter of 2009. The United States is widely expected to follow suit in the coming months. China, India, Brazil and other emerging economies have seen smaller-than-expected fallout from the crisis. (dpa)