IMF confident of action taken to tackle financial crisis

Laos News.Net
Sunday 12th October, 2008

As leaders of the countries using the euro currency announced measures to protect financial institutions and guarantee inter-bank lending, the head of the International Monetary Fund, Dominique Strauss-Kahn, said in Washington Sunday that a coordinated and effective program for combating the financial crisis is now in place.

Strauss-Kahn spoke at the conclusion of a meeting of finance ministers from advanced and developing countries. He said the emergency measures announced on Sunday by European leaders in Paris are very positive.

'I'm confident because I think that what has been done these last few days, starting with the G-7 statement on Friday, going on after with the annual meeting of the [International Monetary] Fund and the World Bank, and ended a few hours, or minutes, ago by the meeting of the euro zone is exactly the type of action we have to take,' said Dominique Strauss-Kahn.

France, Germany, Italy and other 'euro bloc' countries will guarantee inter-bank lending and provide cash to banks that need it. The measures are intended to restore investor confidence and to get credit markets to function properly. On Saturday, Strauss-Kahn warned that the global financial system was on the brink of a meltdown.

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