IMF head: fixing European banks critical to boosting global economyJune 9, 2012 - 12:44 AMT PanARMENIAN.Net - Restoring the health of European banks is critical to strengthening a global economy that is struggling to regain its footing and is at risk of losing ground, the head of the International Monetary Fund said on Friday, June 8, according to Reuters. Christine Lagarde, managing director of the IMF, said it is urgent that European leaders take direct stakes in banks, and in the longer term they need to complement monetary union with financial union. Unified bank supervision, a bank resolution authority and a single deposit insurance fund are the critical steps needed, she said. Moves toward deeper fiscal integration should go hand-in-hand with these steps, Lagarde said in a speech prepared for delivery before a Leaders Dialogue in New York. "Let me be clear: the heart of European bank repair lies in Europe. That means more Europe, not less," she said. Five years since the start of the financial crisis, further action to reform the global financial system is still badly needed, which means strengthening crisis management tools and the overall architecture of the system, she said. Lagarde pointed to a vicious circle of events that is weakening growth and must be broken: mounting financial tensions, followed by action by policymakers, only to see a renewal of tensions. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Ucom General Director gives lecture at French University in Armenia The General Director of Ucom Ralph Yirikian delivered a lecture at the French University of Armenia. Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. Aliyev says no need for mediators in Armenia-Azerbaijan process Azerbaijani President Ilham Aliyev believes that Baku and Yerevan do not mediators in the process of normalizing relations. |