IMF ‘needs more resources to head off relapse’

The International Monetary Fund needs more resources to protect the global economy from a potential relapse that would not spare the US, its managing director Christine Lagarde said.

Now that European governments increased their firewall above a symbolic $1 trillion (€750bn) mark, the time has come to boost the IMF’s own firepower, Ms Lagarde said yesterday in Washington. Strengthening the fund is needed as rising oil prices, strains on Europe’s financial system and high unemployment are threats to the world economic recovery, she said.

“We can provide a circle of protection against global turbulence, and help members adjust to changing circumstances with minimal disruption,” Ms Lagarde said at the Associated Press annual meeting. “But to do this effectively in today’s world, we need more resources.”