Europe crisis serious though on a recovery path: IMF

NEW DELHI: Multilateral lending agency IMF on Thursday termed the economic situation in Europe including Ireland which is facing debt crisis that has affected markets worldwide, as "serious" though the region is on a recovery path.

It also assured technical and financial support to any European member nation if sought for.

Speaking to reporters, International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn, however, exuded confidence that debt plan by European nations to deal with the crisis would fix the Irish problem.

"The situation in Europe is serious. The Irish plan has just been released...I think the Europeans are taking care of the situation in the Europe in the right way," he said after meeting Finance Minister Pranab Mukherjee here.

The IMF chief cautioned that the crisis in Ireland should not be underestimated, even though the economy of the European nation would come back on recovery path.

"We should not underestimate the importance of this crisis which in Ireland ... banking sector and the Irish economy will come back on track rather rapidly," Kahn added.

Recently, EU governments approved an euro 85 billion (USD 113 billion) bailout deal for Ireland to help the debt-struck country to fight the crisis.

According to a statement released by the Irish government, the country will borrow euro 10 billion immediately to boost the capital reserves of its banks.

Another euro 25 billion earmarked for the banks will remain in reserve.

The Irish government's public finances will receive euro 50 billion, to be drawn upon as necessary.

The statement had said the IMF, the 16 eurozone nations and the European Commission will be involved.

On asked whether IMF would consider additional aid package for Europe, Kahn said, if any members want some support --technical support, financial support--- "we are of course happy to do it."

Crisis in Ireland erupted after property bubble bust, leaving banks, whose exposure to the real estate was too huge high and dry.