Lagarde urges unified and bold action to break vicious debt cycle

THE head of the International Monetary Fund (IMF) urged advanced countries to take bold action to break a vicious cycle of weak economic growth and high debt.

This comes as five central banks, including the Federal Reserve, moved to boost the liquidity of commercial banks. The central banks are to provide the commercial lenders with three additional tranches of dollar loans to help ease any funding pressures.

Christine Lagarde, IMF managing director said in a speech, ahead of IMF and World Bank meetings of global financial leaders in Washington next week: “Without collective, bold action, there is a real risk that the major economies slip back instead of moving forward.”