Challenges remain for global recovery: IMF

WASHINGTON: The IMF welcomed on Saturday signs that a global economic rebound was on track but said many challenges still stood in the way, in particular those related to government finances.

"Signs of a strengthening economic recovery are encouraging but many challenges remain that need to be tackled collaboratively," a statement said following a meeting of the International Monetary Fund's financial committee.

The IMF's 186 members added that "we are strongly committed to ensuring sustainable public finances and addressing sovereign debt risks," after the meeting was overshadowed by Greece's financial crisis.

Earlier in the day, US Treasury Secretary Timothy Geithner pressed European Union leaders and the IMF to hammer out a rescue plan for Greece, which has become the poster child for problems caused by fiscal mismanagement.



Geithner met Greek counterpart George Papaconstantinou and representatives of the EU and IMF and "encouraged them to move quickly to put in place a package of strong reforms and substantial concrete financial support," his office said in a statement.

EU economic and monetary affairs chief Olli Rehn said Friday that EU members had worked intensively on details of a Greek rescue package and "should be able to complete the work by early May."