The Group of 20 should take coordinated actions to revive economic growth prospects worldwide on a sustainable basis as European debt crisis is deteriorating, the Institute of international Finance (IIF) urged here Thursday.

Global coordination is of utmost importance, the IIF said in a policy letter to global leaders who will be attending the G20 summit next week. "More coordinated monetary policy and fiscal efforts would be much more powerful than anything individual countries accomplish their own."

For Europe, steps to bolster Spanish banking sector are welcome, but additional measures by Eurozone leaders are vital to address today's crisis resolutely, the IIF added.

Given the severe contraction of Greece's economy, the pace of short-term budgetary adjustment needs continuous examination for potential easing, said IIF Managing Director Charles Dallara.

IIF also drew attention to ongoing economic challenges in the Unites States, Japan and China, saying the United States has to take measures now to avoid a possible "fiscal cliff".

"This would contribute to a strong process of global coordination, boosting market confidence when it is sorely needed, " it noted.

Moreover, the Washington-based organization cautioned that consistent financial regulation should be implemented in ways that avoid further ring-fencing of assets, capital and liquidity.

"The priority given by the Mexican G20 leadership to revitalizing global economic growth and job creation should be emphasized," Dallara added.

The IIF is a leading global financial association representing more than 430 member agencies around the world.