Thursday, October 11, 2012

IMF calls for action as euro zone crisis festers

(Reuters) - The IMF prodded Europe and the United States to act faster to resolve their debt troubles, blaming plodding progress for creating economic uncertainty and slowing global growth.

Christine Lagarde, the head of the International Monetary Fund, said she expected "courageous and cooperative action" as she laid blame on Europe and the United States for fostering a sense of unease that has led companies to delay investment and hiring.

"There are threats on the horizon, threats that can be addressed, should be addressed but are not necessarily addressed," she told reporters ahead of the IMF's twice-yearly meetings in Tokyo.

The IMF cut its global growth forecast this week for the second time since April and said Europe's debt repair process was critically incomplete.

But German Finance Minister Wolfgang Schaeuble said Europe was on track and had accomplished more than it may appear to Europe and the outside world. Read More