. Space Travel News .




.
POLITICAL ECONOMY
Lagarde assures IMF able to boost crisis funds
by Staff Writers
Washington (AFP) April 19, 2012


IMF head Christine Lagarde said Thursday that the crisis lender would get a significant boost to its intervention capacity this week as worries mounted that Spain might be the next eurozone country to seek a rescue.

Warning that "dark clouds" still hover over the global economy, she expressed confidence that International Monetary Fund members meeting in Washington would put up the funds needed for a "global firewall."

But with the United States not taking part, all eyes were on China and the other BRICS emerging powers to see if they would contribute some of their newfound wealth, knowing that some of it could go to more bailouts in Europe.

"As part of the outcome of this meeting, we expect our firepower to be significantly increased," she said, hours after Poland and Switzerland declared their contributions to the $400 billion pool targeted to protect countries from any financial contagion from Europe.

"You've got lots of clouds out there," she told journalists ahead of the annual IMF-World Bank spring meeting, calling the eurozone "the epicenter of potential risks."

Worries that Spain might be the next country to seek a bailout, sparking new turmoil across the fragile eurozone, have filled markets over the past week.

On Thursday Madrid scraped through a key bond market test but failed to quash doubts over its future finances -- the cost of its borrowing was pushed toward the 6 percent level seen as unsustainable.

"Spain has replaced Greece in the international and especially the Anglo-Saxon press as the country that has the most problems. The problems are clearly enormous but reforms are being made," said Daniel Pingarron, analyst at Spanish brokerage IG Markets.

Even so, he admitted, "These tensions are not going to calm in the short term or even the medium term," he added.

Lagarde said Spain does not need an IMF rescue loan as long as Europe itself keeps working to help the government with its reforms.

"There is no such need at the moment as I understand," she told Bloomberg Television.

Madrid was taking "really serious measures" on reforming the country's labor market and reducing its fiscal shortfalls, she said.

"I hope that through the combined efforts that the Europeans will be able to support the efforts undertaken by the Spanish government."

But the IMF continued to push for its own intervention "firepower" with a target set at $400 billion.

Pledges reached the 80 percent mark early Thursday. The European Union has promised $200 billion, Japan $60 billion, and smaller contributors including Sweden, Denmark, and Poland another $60 billion.

All eyes at the IMF headquarters were on whether the BRICS economies seeking greater say in the running of the IMF -- Brazil, Russia, India, China and South Africa -- would meet the balance.

China, the world's largest economy, has remained mum on the issue, and many of the BRICS have voiced concern that their funds could be used to add to the three already huge bailouts underway in Europe.

"We are willing to discuss various funding plans for the IMF with IMF members, in a frank and positive manner," China's Foreign Ministry spokesman Liu Weimin said, according to Xinhua.

With Washington saying it would not contribute, the IMF had already rolled back its target of $500 billion, and some economists worry the IMF and European crisis funds might not be enough if markets turn sour on Spain and Italy.

Lagarde meanwhile urged members to beef up the IMF's Poverty Reduction and Growth Trust, its fund for helping out the world's poorest countries, on top of the crisis firewall.

"It's equally important that we have the adequate resources to help the low-income countries if they need it."

"I very much hope that the entire membership will respond and seize the moment," she said.

Related Links
The Economy




.
.
Get Our Free Newsletters Via Email
...
Buy Advertising Editorial Enquiries



And it's 3... 2... 1... blastoff! Discover the thrill of a real-life rocket launch.



.

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle



POLITICAL ECONOMY
China to ease policy as economy slows: Xinhua
Shanghai (AFP) April 19, 2012
China will ease monetary policy and boost liquidity in the financial system with a series of measures, state media cited a central bank official as saying, in a bid to avoid a sharp economic slowdown. The official Xinhua news agency quoted an unnamed official at the People's Bank of China as saying it planned to "steadily" introduce the measures, including cutting the amount of cash lenders ... read more


POLITICAL ECONOMY
SpaceX said eyeing Texas launch site

Lockheed Martin Names New Leader for Commercial Launch Services Business

A double arrival for Arianespace's next dual-payload Ariane 5 mission

Another weather satellite payload is readied for launch by Arianespace

POLITICAL ECONOMY
Photo Of NASA's Maven Spacecraft and Propellant Tank at Lockheed Martin

Dark regions on Mars may be volcanic glass

Martian impact craters may be hiding life

Russia to Go Back to the Moon Before Reaching for Mars

POLITICAL ECONOMY
Russian Space Agency eyes Moon explorations

Russia postpones Luna-Glob moon mission

Russia Plans to Launch Lunar Rovers to Moon after 2020

Russia to explore moon

POLITICAL ECONOMY
Uranus auroras glimpsed from Earth

Herschel images extrasolar analogue of the Kuiper Belt

New Horizons on Approach: 22 AU Down, Just 10 to Go

POLITICAL ECONOMY
ALMA Reveals Workings of Nearby Planetary System

UF-led team uses new observatory to characterize low-mass planets orbiting nearby star

When Stellar Metallicity Sparks Planet Formation

Study On Extrasolar Planet Orbits Suggests That Solar System Structure Is The Norm

POLITICAL ECONOMY
Peaceful atom for distant space missions

Why do N. Korea's missile tests keep failing?

North Korean rocket launch fails, draws condemnation

N. Korea admits failure as world raps rocket launch

POLITICAL ECONOMY
China's Lunar Docking

Shenzhou-9 may take female astronaut to space

China to launch 100 satellites during 2011-15

Three for Tiangong

POLITICAL ECONOMY
NASA's Swift Monitors Departing Comet Garradd

Herschel Spots Comet Massacre Around Nearby Star

Jupiter helps Halley's Comet give us more spectacular meteor displays

Russia Wants To Bind Satellite To Apophis Asteroid


Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

.

The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement