IMF: eurozone at centre of coming storm

EUObserver reported International Monetary Fund chief Christine Lagarde as warning on the 19 April 2012 of 'dark clouds' hanging over the global recovery, with the eurozone at the heart of the problem.

She told reporters at the 2012 IMF–World Bank Spring Meetings in Washington D.C. that collective action was needed on the part of global policymakers to address a range of challenges.

Lagarde said the euro zone was the epicenter of potential risk, but added that action taken during the last six months displayed significant determination to defend the common currency.

Subsequently, the Group of Twenty (G-20) advanced and emerging market economies, along with the broader IMF membership, agreed on pledges to boost the IMFs lending capacity by more than $430 billion.

IMF Managing Director Christine Lagarde told a news conference on the 20 April 2012 that the new commitments would almost double the IMF’s lending power.

• Primary Source

ESO: Background information: European Banks Remain Under Pressure From Weak Growth http://www.europeansources.info/record/european-banks-remain-under-pressure-from-weak-growth/

ESO: Background information: EU hoping for IMF boost after firewall increase http://www.europeansources.info/record/eu-hoping-for-imf-boost-after-firewall-increase/

IMF Survey, 19.4.12: Global Economy's 'Timid' Recovery Faces High Risks—Lagarde http://www.imf.org/external/pubs/ft/survey/so/2012/NEW041912A.htm

IMF Survey, 20.4.12: IMF to Double Lending Power as Pledges Top $430 Billion http://www.imf.org/external/pubs/ft/survey/so/2012/NEW042012A.htm

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