G7 leaders agree on plan to combat terrorism financing

SENDAI, Japan, May 21 (UPI) -- Finance ministers from the Group of Seven pledged to work more closely to stop the global funding of terrorism following a meeting in Japan.

The G7 nations agreed to an "action plan" that includes sharing financial and intelligence data in order to halt the international flow of money to terrorist elements like the Islamic State and al Qaida.

Finance ministers and governors of the G7 nations' central banks met in Japan ahead of the G7 summit in Japan next week, where leaders from the seven nations will gather to discuss a broad range of issues.

Japanese Finance Minister Taro Aso also brought the host nation's concerns to U.S. Treasury Secretary Jacob Lew over what Japan terms speculative treatment of the yen in international currency markets.

The yen has recently climbed 9 percent in value this year, which has placed a strain on Japanese exports. A stronger currency makes that nation's goods more expensive relative to others, hurting businesses that rely on international sales.

Lew responded, saying he did not see the need to take action to devalue the yen.

Leaders are also expected to debate the role of government spending in trying to revive a sluggish global economy. Canada and Japan are said to be in favor of agreeing to more domestic spending, while debt-averse Germany is opposed.

The G7 consists of the United States, Canada, France, Germany, Japan, Great Britain and Italy. Russia was expelled from what was the G8 after it annexed the Crimean peninsula from Ukraine.