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NY TimesWASHINGTON — The head of the International Monetary Fund said Saturday that the global economic recovery, while moving along faster than expected, was vulnerable to threats posed by long-term unemployment and unsustainable public debts.
“After panic, action and relief is the phase of rebuilding,” Dominique Strauss-Kahn, managing director of the monetary fund, said at its spring meetings.
Youssef Boutros-Ghali, the Egyptian finance minister, who led a meeting of the fund’s policy making committee, said, “The worst is definitely behind us, but we are not out of the woods yet.”
The I.M.F., which only a few years ago found itself defending its relevance, has assumed a new prominence and increased its lending capacity since the global economic turmoil began in 2007. It extended loans of $2 billion to Latvia and $16 billion to Hungary in 2008, and it is now expected to contribute as much as $20 billion to a bailout of debt-stricken Greece.
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http://www.nytimes.com/2010/04/25/business/global/25imf.html