IQALUIT, Canada (Reuters) – Reassurances about debt-strapped Greece and a promise to make banks repay rescue  funds capped an international meeting in Canada’s Arctic, as  European policymakers sought to convince jittery markets that  they have things under control.

Ministers and central bank governors agreed economies were  recovering from recession but it was too early to withdraw  government help.

In a statement issued yesterday after two days of talks  by the Group of Seven rich industrialized countries, European  Central Bank President Jean-Claude Trichet said he believed  Greece would meet tough new targets to rein in its budget gap.

“We expect and we are confident that the Greek government  will take all the decisions that will permit it to reach that  goal,” Trichet said.

Adding her voice, French Finance Minister Christine Lagarde  said euro zone countries would monitor the plan and Jean-Claude  Juncker, chairman of the group of euro zone finance ministers,  dismissed the idea Greece would need money from the  International Monetary Fund.

Not everyone was convinced it would be that easy, however,  given that Greece’s problems already have driven down debt  prices of other high-deficit European countries.

World stock markets slumped to three-month lows on Friday  on fear that the crisis would spread and the euro fell to its  lowest level against the dollar in 8-1/2 months.

“I don’t think Trichet’s comments will help ease concerns  about the euro zone. There is still no concrete plan on the  Greek issue,” said Boris Schlossberg, Director of FX Research  at GFT in New York.

“The other problem is that the G7 has agreed to put a tax  on banks, and any type of taxation on the banking sector is  going to be viewed negatively by the market. So the net result  of all this is not a boost of confidence in the capital market.  We may see a little more turbulence going forward. Overall, the  G7 meeting, instead of reassuring the market may have simply  created more angst.”

Greece, which aims to slash its budget deficit of nearly 13  percent of gross domestic product to below 3 percent in 2012,  was a late entry to the G7 agenda. Earlier, ministers had  expected talks to focus on efforts to reform a financial sector  that is still recovering from last year’s market meltdown.