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."

Loading...

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.

  • 8 of 10 cities most at risk from natural disasters located in Phl – study
    8 of 10 cities most at risk from natural disasters located in Phl – study

    Eight of 10 world cities most exposed to natural hazards are in the Philippines and more than half of the 100 cities most exposed to earthquakes, storms and other disasters are in four Asian nations, according to a research. The study, published on Wednesday by risk analysis firm Verisk Maplecroft, analyzed the threat posed by storms, floods, earthquakes, tsunamis, fires, volcanoes and landslides in more than 1,300 cities. The study found that the 10 cities most at risk are Port Vila in …

  • Billionaire finds wreck of WWII ship in Phl
    Billionaire finds wreck of WWII ship in Phl

    Microsoft co-founder Paul Allen says he has found the Japanese Navy’s biggest warship at the bottom of the sea in the Philippines, 70 years after US forces sank it. Allen posted a photo on Twitter on Tuesday of the World War II battleship Musashi’s rusty bow, which bore the Japanese empire’s Chrysanthemum seal. The American billionaire, who has also pursued space exploration, said his luxury yacht and exploration ship, the M/Y Octopus, found the Musashi one kilometer (1.6 miles) deep on the …

  • Miriam bucks house arrest for Enrile
    Miriam bucks house arrest for Enrile

    Sen. Miriam Defensor-Santiago believes granting Senate Minority Leader Juan Ponce Enrile house arrest, while former President Gloria Macapagal-Arroyo remains under hospital detention, will violate the equal protection clause of the Constitution. “That’s already a violation of the equal protection of the law,” she said. …

  • UNA hits PNP selection process
    UNA hits PNP selection process

    The United Nationalist Alliance (UNA) hit yesterday the apparent machinations in the selection of the new Philippine National Police (PNP) chief. Navotas Rep. Toby Tiangco, UNA interim president, said the administration and the ruling Liberal Party (LP) are perpetuating the bata-bata or patronage system in the selection process of the police chief. “They will start this by maneuvering the appointment of Gen. Garbo as PNP chief,” said Tiangco, referring to one of the top contenders for PNP …

  • World's oldest person wonders about secret to longevity too
    World's oldest person wonders about secret to longevity too

    TOKYO (AP) — The world's oldest person says 117 years doesn't seem like such a long time. …

  • Pacquiao: Mayweather is the fight of my life
    Pacquiao: Mayweather is the fight of my life

    Manny Pacquiao called his boxing showdown with Floyd Mayweather “the fight of my life” as he got down to work pounding the streets and gym in Los Angeles. On Monday, Pacquiao ran two miles (3.2 km) and shadow-boxed for two rounds, followed by abdominal work and breakfast of steamed rice, scrambled egg, fish and chicken broth. Then he napped until noon and had lunch before heading to trainer Freddie Roach’s Wild Card Gym, which is strictly off-limits to fans and media during Pacquiao’s …

  • Ohio mom, boyfriend guilty; child emailed teacher for help

    PORTSMOUTH, Ohio (AP) — A woman and her boyfriend pleaded guilty to raping her young children and were sentenced to prison on Wednesday, a year after one of her daughters emailed a teacher for help and said she and her siblings were being chained to their beds, deprived of food and sexually assaulted. …

  • An ocean away, Pacquiao's trainer makes some noise from afar
    An ocean away, Pacquiao's trainer makes some noise from afar

    LAS VEGAS (AP) — Armed guards patrolling the gym where Manny Pacquiao trains. Stealthy attempts to disrupt Pacquiao's sparring. And a bit of trash talking just to spice things up two months before the big fight. …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options