IMF calls for action to tackle global crisis
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Xinhua News Agency, September 25, 2011
The International Monetary Fund (IMF) Managing Director Christine Lagarde on Saturday urged world leaders to implement measures available to deal with the " dangers confronting the global economy."
There was "clear common recognition" of the current financial crisis, especially in euro area, Lagarde said at a press conference after the meeting of the International Monetary and Financial Committee (IMFC), the steering body of the 187-member international financial institution.
The world is "half way through" the work that needed to be done to deal with the crisis, Lagarde said.
According to the communique of the IMFC, the world economy is facing four major challenges, including sovereign debt risks, financial system fragility, weakening economic growth and low employment.
Lagarde said that she was "very encouraged" by the dialogue among the ministers who are gathering in Washington DC for the annual meetings of the IMF and it's sibling organization, the World Bank.
The Group of 20 (G20) economic policy makers met Wednesday on the sideline of the IMF/world annual meetings and urged swift action to prevent the European debt crisis from escalating into a global financial meltdown.
Ministers and central bank governors of the G20 major economies vowed to take "all necessary actions" to stabilize the market and avoid another financial tsunami.
Lagarde stressed that euro leaders need to implement their decision of July 21 to increase the flexibility of the European Financial Stability Facility, maximizing it's impact, and to improve euro-area crisis management and governance.
The European sovereign debt crisis is worsening in recent days as market speculates that Greece will default on its sovereign debts.
Panic is prevailing of global markets through the highly connected financial channels.
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