More measures needed to calm crisis: IMF head
More measures are needed to tackle the crisis which has pushed the world financial system to the brink of meltdown, the head of the International Monetary Fund said on Saturday.
By Agencies |
WASHINGTON: More measures are needed to tackle the crisis which has pushed the world financial system to the brink of meltdown, the head of the International Monetary Fund said on Saturday.
"Intensifying solvency concerns about a number of the largest US-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown," Dominique Strauss-Kahn told the IMF annual meeting in Washington.
He noted that the US and European authorities have taken "extraordinary measures" in an effort to stem the crisis but they "have not yet achieved the goal of stabilizing markets and bolstering confidence.
"Thus, additional moves will likely be needed in coming months."
The IMF meeting follows a gathering of the Group of Seven industrialized nations which agreed to "use all available tools" in order to support major banks and prevent their failure as the crisis rips through the markets.
Measures taken so far in the United States and Europe, which have included massive bailout plans for the banks as well as providing hundreds of billions of dollars in liquidity, have failed to stem the onslaught which is now sapping economic growth.
Strauss-Kahn warned that financial conditions "are expected to remain very difficult, restraining global growth prospects" but there are some grounds for hope that recovery will emerge in 2009.
"Intensifying solvency concerns about a number of the largest US-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown," Dominique Strauss-Kahn told the IMF annual meeting in Washington.
He noted that the US and European authorities have taken "extraordinary measures" in an effort to stem the crisis but they "have not yet achieved the goal of stabilizing markets and bolstering confidence.
"Thus, additional moves will likely be needed in coming months."
The IMF meeting follows a gathering of the Group of Seven industrialized nations which agreed to "use all available tools" in order to support major banks and prevent their failure as the crisis rips through the markets.
Measures taken so far in the United States and Europe, which have included massive bailout plans for the banks as well as providing hundreds of billions of dollars in liquidity, have failed to stem the onslaught which is now sapping economic growth.
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Strauss-Kahn warned that financial conditions "are expected to remain very difficult, restraining global growth prospects" but there are some grounds for hope that recovery will emerge in 2009.
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