NIGERIA: International Monetary Fund chief Christine Lagarde urges developing countries to shore up their defences, especially foreign exchange reserves, against a possible European recession next year

Record ID: 235393

  • Title: NIGERIA: International Monetary Fund chief Christine Lagarde urges developing countries to shore up their defences, especially foreign exchange reserves, against a possible European recession next year
  • Date: 21st December 2011
  • Summary: LAGOS, NIGERIA (DECEMBER 20, 2011) (REUTERS) IMF MANAGING DIRECTOR, CHRISTINE LAGARDE, WALKING TO THE PODIUM TO GIVE HER PRESENTATION VARIOUS OF GUESTS LISTENING (SOUNDBITE) (English) CHRISTINE LAGARDE, MANAGING DIRECTOR OF INTERNATIONAL MONETARY FUND, SAYING: "What we see very clearly is channels of contagion between those advanced economies and the rest of the world and when we look at the forecast for the emerging markets or for the developing countries, the same phenomenon can be observed. Growth is slowing down. Capital that flew towards those countries are flying out of those countries. The volume of remittance that was coming back to the home countries from the host countries where people are doing business or having a salary is reducing." GUESTS LISTENING (SOUNDBITE) (English) CHRISTINE LAGARDE, MANAGING DIRECTOR OF INTERNATIONAL MONETARY FUND, SAYING: "The advanced economies, as I said, have to be at the core of the solution because they are at the core of the problems, -- fiscal adjustments, growth friendly policies in the short term for those that can afford it, for those that have physical space of course, anchoring the medium term expectations when it comes to public finances and also strengthening the financial sectors." GUESTS CLAPPING VARIOUS LAGARDE SHAKING HANDS WITH NIGERIAN OFFICIALS
  • Embargoed: 5th January 2012 12:00
  • Keywords:
  • Location: Nigeria, Nigeria
  • Country: Nigeria
  • Topics: Economy,Politics
  • Reuters ID: LVA8DSF05O5NIEEBOHHY7LHWH4Q0
  • Story Text: The Managing Director of the International Monetary Fund Christine Lagarde urged developing countries on Tuesday (December 20) to shore up their defences, especially foreign exchange reserves, against a possible European recession next year.
    Lagarde was speaking during a visit to Nigeria in which she met President Goodluck Jonathan and Finance Minister Ngozi Okonjo-Iwaela and praised their planned economic reforms.
    The IMF head urged developing economies to make sure they stocked enough reserves to weather the storm as they did extremely well back during 2008-2009 when the global financial crisis hit hard.
    "What we see very clearly is channels of contagion between those advanced economies and the rest of the world and when we look at the forecast for the emerging markets or for the developing countries, the same phenomenon can be observed. Growth is slowing down. Capital that flew towards those countries are flying out of those countries. The volume of remittance that was coming back to the home countries from the host countries where people are doing business or having a salary is reducing," Lagarde said.
    European finance ministers were discussing ways of boosting IMF resources to build a better firewall against the debt crisis, while also assessing plans for tighter euro zone fiscal rules that they hope will prevent the problems from worsening.
    But measures agreed in a summit on December 9 have failed to calm markets, and on Friday ratings agency Fitch said a 'comprehensive solution' to the crisis was beyond reach, warning that six euro zone economies, including Italy and Spain, could face credit downgrades.
    Lagarde urged them to introduce growth-friendly policies.
    "The advanced economies as I said have to be at the core of the solution because they are at the core of the problems -- fiscal adjustments, growth friendly policies in the short term for those that can afford it, those that have physical space of course, anchoring the medium term expectations when it comes to public finances and also strengthening the financial sectors," Lagarde said.
    Lagarde is due to leave for Niger ahead of her visit to South Africa later.
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