IMF chief says situation in Europe still 'troubling'

8th December 2010, Comments 0 comments

The head of the IMF Dominique Strauss-Kahn said Wednesday that the situation in Europe, which is battling a debt crisis, remains troubling and that the future looked uncertain.

"The situation in Europe remains troubling, and the future is more uncertain than ever," said Strauss-Kahn, managing director of the International Monetary Fund, in Geneva.

Nevertheless, he called on the international community to begin bolstering supervision to head off future crises.

"Without waiting for calm to be restored, we need to start rebuilding these governance structures. It's time for a triple comeback," said the IMF chief.

The international community has been looking at ways to bolster financial governance, including imposing stricter rules on banks, after a massive financial crisis in 2008.

Strauss-Kahn noted that the effects of the crisis were "far from over."

The eye of the storm has this year turned to Europe, where debt-stricken Greece and Ireland had been forced to tap into EU-IMF rescue funds to keep afloat.

European Union leaders have in recent days been debating whether to increase the size of an overall EU-IMF rescue fund.

Portugal, which like Greece and Ireland is reeling under its public debt burden, is now firmly in the firing line to need help next.

© 2010 AFP

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