Europe needs to bulk up its planned permanent euro rescue fund, take politics out of its decision- making and use it as a building block in a global financial firewall, a former International Monetary Fund official said.
European governments are making a mistake by ruling out debt restructurings for countries such as Greece before 2013 and should consider “pre-emptive” bond exchanges, a former top International Monetary Fund official said.
A week after becoming the only woman in history to take charge at the International Monetary Fund, Christine Lagarde notched another milestone: she nominated Zhu Min, a former deputy governor of the People’s Bank of China, as a deputy. Zhu is the first Chinese deputy managing director since the fund’s founding in 1945.
A European proposal to channel central bank loans through the International Monetary Fund may deliver as much as 200 billion euros ($270 billion) to fight the debt crisis, two people familiar with the negotiations said.
France is balking at calls for the faster imposition of sanctions on deficit-ridden governments, putting it at odds with Germany and the European Central Bank over how to prevent a repeat of the debt crisis.