. GPS News .




.
POLITICAL ECONOMY
Lagarde assures IMF able to boost crisis funds
by Staff Writers
Washington (AFP) April 19, 2012


IMF head Christine Lagarde said Thursday that the crisis lender would get a significant boost to its intervention capacity this week as worries mounted that Spain might be the next eurozone country to seek a rescue.

Warning that "dark clouds" still hover over the global economy, she expressed confidence that International Monetary Fund members meeting in Washington would put up the funds needed for a "global firewall."

But with the United States not taking part, all eyes were on China and the other BRICS emerging powers to see if they would contribute some of their newfound wealth, knowing that some of it could go to more bailouts in Europe.

"As part of the outcome of this meeting, we expect our firepower to be significantly increased," she said, hours after Poland and Switzerland declared their contributions to the $400 billion pool targeted to protect countries from any financial contagion from Europe.

"You've got lots of clouds out there," she told journalists ahead of the annual IMF-World Bank spring meeting, calling the eurozone "the epicenter of potential risks."

Worries that Spain might be the next country to seek a bailout, sparking new turmoil across the fragile eurozone, have filled markets over the past week.

On Thursday Madrid scraped through a key bond market test but failed to quash doubts over its future finances -- the cost of its borrowing was pushed toward the 6 percent level seen as unsustainable.

"Spain has replaced Greece in the international and especially the Anglo-Saxon press as the country that has the most problems. The problems are clearly enormous but reforms are being made," said Daniel Pingarron, analyst at Spanish brokerage IG Markets.

Even so, he admitted, "These tensions are not going to calm in the short term or even the medium term," he added.

Lagarde said Spain does not need an IMF rescue loan as long as Europe itself keeps working to help the government with its reforms.

"There is no such need at the moment as I understand," she told Bloomberg Television.

Madrid was taking "really serious measures" on reforming the country's labor market and reducing its fiscal shortfalls, she said.

"I hope that through the combined efforts that the Europeans will be able to support the efforts undertaken by the Spanish government."

But the IMF continued to push for its own intervention "firepower" with a target set at $400 billion.

Pledges reached the 80 percent mark early Thursday. The European Union has promised $200 billion, Japan $60 billion, and smaller contributors including Sweden, Denmark, and Poland another $60 billion.

All eyes at the IMF headquarters were on whether the BRICS economies seeking greater say in the running of the IMF -- Brazil, Russia, India, China and South Africa -- would meet the balance.

China, the world's largest economy, has remained mum on the issue, and many of the BRICS have voiced concern that their funds could be used to add to the three already huge bailouts underway in Europe.

"We are willing to discuss various funding plans for the IMF with IMF members, in a frank and positive manner," China's Foreign Ministry spokesman Liu Weimin said, according to Xinhua.

With Washington saying it would not contribute, the IMF had already rolled back its target of $500 billion, and some economists worry the IMF and European crisis funds might not be enough if markets turn sour on Spain and Italy.

Lagarde meanwhile urged members to beef up the IMF's Poverty Reduction and Growth Trust, its fund for helping out the world's poorest countries, on top of the crisis firewall.

"It's equally important that we have the adequate resources to help the low-income countries if they need it."

"I very much hope that the entire membership will respond and seize the moment," she said.

Related Links
The Economy




.
.
Get Our Free Newsletters Via Email
...
Buy Advertising Editorial Enquiries






.

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle



POLITICAL ECONOMY
China to ease policy as economy slows: Xinhua
Shanghai (AFP) April 19, 2012
China will ease monetary policy and boost liquidity in the financial system with a series of measures, state media cited a central bank official as saying, in a bid to avoid a sharp economic slowdown. The official Xinhua news agency quoted an unnamed official at the People's Bank of China as saying it planned to "steadily" introduce the measures, including cutting the amount of cash lenders ... read more


POLITICAL ECONOMY
Scientists discover 'switch' in plants to create flowers

Using maths to feed the world

Hunt on for rice to resist salt, flooding

Salt levels in fast food vary significantly between countries

POLITICAL ECONOMY
Dutch high-tech group ASML reports Q1 profits slump

UWM discovery advances graphene-based electronics

New X-ray technique reveals structure of printable electronics

Intel earnings beat expectations

POLITICAL ECONOMY
Boeing Celebrates 4,000th Next-Generation 737

Bats save energy by drawing in wings on upstroke

Air tax feud may affect climate change talks: US envoy

Dutch plan to gas troublesome airport geese

POLITICAL ECONOMY
Ford says to build new, multi-million plant in China

Renault set to build cars in China with Dongfeng: source

Skoda Auto posts record sales with boost from China, India

China's auto sales fall 3.4% in first quarter

POLITICAL ECONOMY
S. America more cautious with Asia imports

Tourism sector eyes travellers from emerging nations

China to fuel world copper demand

Japan posts record fiscal-year trade deficit

POLITICAL ECONOMY
Eight native Mexicans shot dead defending forest

DMCii's detailed satellite imagery helps Brazil stamp out deforestation as it happens

UCSB Study Shows Forest Insects and Diseases Arrive in U.S. Via Imported Plants

Russia decodes ancient dawn redwood DNA

POLITICAL ECONOMY
NASA Satellite Movie Shows Great Plains Tornado Outbreak from Space

FCC drops Google 'Street View' investigation

Envisat services interrupted

ITT Exelis delivers imaging system for next-generation, high-resolution GeoEye-2 satellite

POLITICAL ECONOMY
High-res atomic imaging of specimens in liquid by TEM using graphene liquid cell

Carbon nanotubes can double growth of cell cultures important in industry

Nanoscale magnetic media diagnostics by rippling spin waves

Nanostarfruits are pure gold for research


Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

.

The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement