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FINANCE > IMF chief warns of crisis taint

LONDON - Agence France-Presse

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Lagarde speaks at a news conference at the Treasury in London on May 22. REUTERS photo

Lagarde speaks at a news conference at the Treasury in London on May 22. REUTERS photo

IMF chief Christine Lagarde warned yesterday of the risk of “contamination” if Greece quits the euro and said the eurozone might therefore see the value of paying more to keep Greece in. The International Monetary Fund managing director told BBC radio in an interview that a Greek exit from the single currency was “certainly not the most favourable option and not one that we encourage”.

The trouble with a Greek departure is “the risk of contamination, from one isolated member that would be carved out, to other members within the zone that want to stay within the zone, who are wanted by their partners and who are doing all the right things,” the former French finance minister said.

Asked what would happen if Greek voters rejected austerity in their second general election in the space of weeks on June 17, she said: “If the Greek people don’t want to pay the price, somebody has to pay the price.” Lagarde said other eurozone countries might see the integrity of the 17-country bloc as worthwhile enough to keep supporting Greece with more money.

“It may well be that members of the eurozone will be prepared to support financially more and maybe longer the Greek country and population to stay within the zone,” she said.

She said Greece had made “huge efforts but they have more to do” to sort their finances out.

Lagarde said there was an “inconsistency” in Greek voters rejecting political parties that supported “belonging to the eurozone and being sensible about it” and saying they want to remain in the euro, as doing so “has a price”.

May/24/2012

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Vangelis Denaxas

5/30/2012 3:50:12 PM

It is exactly what albay mentions. Institutes like IMF are sth like a cancer for global economy and for the stability of societies all around the world. They are vultures who seek more and more opportunities in order to give national resources of all countries to a few people on the planet. Crisis many times is not a matter of particular societies and nations, but a consequence of the gumbling games of these people and nothing more

john albay

5/24/2012 11:58:01 AM

Of course this lady would say that,she is paid to say that! The EU and IMF want counties to be under their boot so they can rule them.The EU is an un democratic swindle which gives top jobs and money to a small group of power mad people.
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