http://www.telegraph.co.uk/finance/finan....ys-Lagarde.html
IMF may need billions in extra funding, says Lagarde
Britain may have to provide billions of pounds for global bail-outs if the economic crisis worsens the head of the International Monetary Fund has warned.
Christine Lagarde said the money available to the organisation “pales in comparison to the potential financing needs of vulnerable countries”.
In the wake of the global credit crisis, the funding of the IMF tripled and Britain’s exposure to it rose to £20 billion. This figure is poised to rise again if financial troubles engulf bigger economies such as Italy and Spain.
Yesterday, Alistair Darling, the former Labour chancellor who was in office during the previous crisis in 2008, warned that the problems facing the global economy were worse than three years ago.
“There are lessons to be learnt, and they are not being learnt by those responsible at the moment,” he said. “Lehmans [the investment bank that collapsed in September 2008] taught us one thing which is if you know there is a problem, take action, sort it out [in a way] that is more decisive than people expect if you are going to stop it.
“The problem with the Greek crisis is that it has been allowed to run on and on and on.”
IMF may need billions in extra funding, says Lagarde
Britain may have to provide billions of pounds for global bail-outs if the economic crisis worsens the head of the International Monetary Fund has warned.
Christine Lagarde said the money available to the organisation “pales in comparison to the potential financing needs of vulnerable countries”.
In the wake of the global credit crisis, the funding of the IMF tripled and Britain’s exposure to it rose to £20 billion. This figure is poised to rise again if financial troubles engulf bigger economies such as Italy and Spain.
Yesterday, Alistair Darling, the former Labour chancellor who was in office during the previous crisis in 2008, warned that the problems facing the global economy were worse than three years ago.
“There are lessons to be learnt, and they are not being learnt by those responsible at the moment,” he said. “Lehmans [the investment bank that collapsed in September 2008] taught us one thing which is if you know there is a problem, take action, sort it out [in a way] that is more decisive than people expect if you are going to stop it.
“The problem with the Greek crisis is that it has been allowed to run on and on and on.”
