Lagarde says IMF needs less new funds than thought

The International Monetary Fund said Wednesday it probably needs less new money for crisis intervention than previously thought, crediting action by the eurozone for the change.

"The needs now may not be quite as large as we had estimated earlier this year. It's only because action was taken by the European institutions," IMF chief Christine Lagarde said in a Washington speech.

Lagarde comments come a week before the IMF and the G20 finance ministers and central bankers hold meetings, with a key aim of boosting the IMF's resources for intervening in financial crises.

With the European economy on the brink, for months the Fund has said it needs some $500 billion in ready funds, and has asked member states to say how much they could put up.

In December the euro area itself offered 150 billion euros ($189 billion) for the funding round.

But the United States, the IMF's largest shareholder, has indicated it will not participate.

Lagarde stressed the continued need to collect funds, even if the amount is less than expected.

"To be as effective as possible, we need to increase our resources," Lagarde insisted. "We are, of course, continuously assessing and reassessing global risks."

"I am hopeful that, during the upcoming Spring Meetings, we will see developments, we will make progress, and we shall seize the moment."

Lagarde also told the audience at the Brookings Institution think tank, that the world and Europe had seen "some" improvement in the economic climate, after months of crisis.

"We have earned a bit of time to think through and to actively pursue what still needs to be done."

However, she underscored, "the risks remain high; the situation fragile."

"Clearly, the risk that looms largest is that sovereign and financial stresses return with renewed force in Europe."

She said the IMF and its members need to construct a "stronger global firewall" to prevent a region's problems from infecting healthy economies elsewhere.

"In today's global economy, with its dazzling array of instant interconnections, a stronger European firewall can only ever be part of the solution. A stronger global firewall will help complete the 'circle of protection' for every country."

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • The return of Gigi Reyes Ellen Tordesillas, Contributor - The Inbox
    The return of Gigi Reyes

    By Ellen T.Tordesillas This is going to be fascinating. Atty. Gigi Reyes, former chief of staff of Sen. Juan Ponce-Enrile who is included among those accused of plunder in connection with the misuse of Priority Development Assistance Fund, came back … Continue reading → …

  • Viernes Santo in Kalibo VERA Files - The Inbox
    Viernes Santo in Kalibo

    Photos by Little Wing Luna, VERA Files Text by Mitch Meñez Kalibo, Aklan--Viernes Santo or Good Friday is the most solemn of all the days in Holy Week. It commemorates the Passion and Death of Jesus on the Cross. The … Continue reading → …

  • Hugas Dugo VERA Files - The Inbox
    Hugas Dugo

    Text by Kimmy Baraoidan, VERA Files Photos by Chris Quintana and Kimmy Baraoidan Pakil, Laguna--In the small town of Pakil, Laguna resides a group of men who call themselves Hugas Dugo. Most members of the group are residents of the … Continue reading → …

POLL
Loading...
Poll Choice Options