IMF: Increase rescue fund

The head of the IMF has called on EU governments to boost the size of their rescue fund and consider financial risk-sharing steps such as common eurozone bonds as a way out of their sovereign debt crisis.

In a speech at the German Council on Foreign Relations yesterday, IMF managing director Christine Lagarde said the world economy faced a defining moment requiring quick, collective action.

She urged leading powers to back a resource rise for the lender to help fill a global financing hole the IMF thinks could reach €774 billion.