The head of the International Monetary Fund says European governments need to show political clarity about the handling of their debt crisis to reassure lenders and investors.

Christine Lagarde said Thursday, November 10, that clearer direction about leadership of Europe's response to the financial crisis would help to encourage financial stability.

Lagarde was in Beijing for talks with Chinese leaders but declined to discuss a possible contribution by Beijing to a European bailout.

She said developing countries have offered to contribute to the IMF but don't want the money specifically directed to Europe, The Associated Press reported.