ID :
189922
Mon, 06/20/2011 - 19:43
Auther :
Shortlink :
https://oananews.org//node/189922
The shortlink copeid
IMF urges Europe to speed up banking sector reform
By Lee Chi-dong
WASHINGTON, June 20 (Yonhap) -- The International Monetary Fund (IMF) warned Monday that the ongoing economic crisis in some European nations may spill over to the rest of the world and further slow the recovery of the U.S. and other major economies if they fail to reform the banking sector.
The IMF emphasized that strengthening the banking sector is a "top priority."
"Preference should be given to market-based solutions, including private capital raising and cross-border mergers and acquisitions," the Washington-based organization said in a report released after an annual consultation with the eurozone economies.
"Given the euro area's role in the global economy, success in addressing the sovereign crisis and raising growth has a significant impact elsewhere," it added.
The IMF called for a "cohesive and cooperative approach" to contain the crisis in the periphery and limit global spillovers.
"An intensification of the crisis, especially if stress were to spread to the core of the euro area, would have major global repercussions," it said.
In a press conference in Luxembourg, meanwhile, John Lipsky, acting managing director of the IMF, said, "Our analysis suggests that the spillovers from the ongoing difficulties in the periphery are relatively small."
"But it also shows that the crisis would be felt much more strongly around the world if it spread to the banks in the core of the euro area," he added, according to a transcript distributed by the IMF.
The IMF and eurozone countries are trying to reach a deal on the proposed fresh bailouts of US$17.1 billion for Greece, aimed at keeping it from defaulting on its debts.
WASHINGTON, June 20 (Yonhap) -- The International Monetary Fund (IMF) warned Monday that the ongoing economic crisis in some European nations may spill over to the rest of the world and further slow the recovery of the U.S. and other major economies if they fail to reform the banking sector.
The IMF emphasized that strengthening the banking sector is a "top priority."
"Preference should be given to market-based solutions, including private capital raising and cross-border mergers and acquisitions," the Washington-based organization said in a report released after an annual consultation with the eurozone economies.
"Given the euro area's role in the global economy, success in addressing the sovereign crisis and raising growth has a significant impact elsewhere," it added.
The IMF called for a "cohesive and cooperative approach" to contain the crisis in the periphery and limit global spillovers.
"An intensification of the crisis, especially if stress were to spread to the core of the euro area, would have major global repercussions," it said.
In a press conference in Luxembourg, meanwhile, John Lipsky, acting managing director of the IMF, said, "Our analysis suggests that the spillovers from the ongoing difficulties in the periphery are relatively small."
"But it also shows that the crisis would be felt much more strongly around the world if it spread to the banks in the core of the euro area," he added, according to a transcript distributed by the IMF.
The IMF and eurozone countries are trying to reach a deal on the proposed fresh bailouts of US$17.1 billion for Greece, aimed at keeping it from defaulting on its debts.
