IMF Europe crisis role may not be 'visible': Lagarde

SAO PAULO Fri Dec 2, 2011 8:51pm IST

International Monetary Fund Managing Director Christine Lagarde gestures during a news conference in Brasilia December 1, 2011. REUTERS/Ueslei Marcelino

International Monetary Fund Managing Director Christine Lagarde gestures during a news conference in Brasilia December 1, 2011.

Credit: Reuters/Ueslei Marcelino

Related Topics

SAO PAULO (Reuters) - The International Monetary Fund is happy to play a behind the scenes role in resolving the European debt crisis, which needs to be tackled with fiscal consolidation and structural reforms, the lender's chief Christine Lagarde said on Friday.

Lagarde, in Brazil for the last leg of a Latin American visit to drum up support for more global cooperation, said the risk of contagion from the crisis had materialized.

"I'm very happy if the IMF is in the middle of it, but in an effective way, not necessarily a visible way," Lagarde said in the recording of a Globo News TV news show in Sao Paulo.

Lagarde urged euro zone countries to find a collective, comprehensive solution to the crisis or risk enduring a lost decade.

European leaders are scrambling for a definitive end to a spreading debt crisis that is dragging down global growth and could even spell the end of the 17-nation euro zone.

The crisis has boosted the role of emerging economies on the world stage, but could also prompt some to take protectionist measures, Lagarde said.

Lagarde commended Brazil's economic management and policies, which she says had left the country better prepared than many to weather potential contagion from the euro zone debt crisis.

Brazil and other major emerging countries have said they are willing to boost the IMF's war chest to help solve a crisis in Europe that is threatening their own growth.

After red-hot growth in 2010 Brazil's economy is now slowing more than expected, prompting the government to issue a flurry of measures to boost consumption and lending.

Other emerging markets are expected to move ahead with stimulus measures to shore up their economies hurting from a drop in global lending and trade.

(Reporting by Todd Benson; Writing by Alonso Soto, editing by W Simon )

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared
People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro Q4 net profit beats estimates, rises 29 percent

Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier.  Full Article | Full Coverage 

REUTERS SHOWCASE

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Read | Full Coverage 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

Insider Trading Case

Insider Trading Case

Ex-Goldman director Rajat Gupta to surrender June 17 in insider case.  Full Article 

Expansion Plans

Expansion Plans

Reliance Industries, HPCL Mittal plan refinery expansions.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Deal Talk

Deal Talk

Piramal to buy 20 percent stake in Shriram Capital for $334 million.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage