JAPAN: IMF Managing Director Christine Lagarde call for action at Tokyo meetings even as Chinese delegation skips meetings

Record ID: 466669

  • Title: JAPAN: IMF Managing Director Christine Lagarde call for action at Tokyo meetings even as Chinese delegation skips meetings
  • Date: 12th October 2012
  • Summary: TOKYO, JAPAN (OCTOBER 11, 2012) (REUTERS) POLICE WALKING ACROSS STREET POLICE OFFICERS POLE WITH BANNER READING: "2012 TOKYO ANNUAL MEETINGS" POLICE OFFICERS PEOPLE WALKING/ WALL WITH BANNER READING: "2012 TOKYO ANNUAL MEETINGS" VENUE ENTRANCE VARIOUS OF PEOPLE GOING THROUGH SECURITY TOKYO, JAPAN (OCTOBER 11, 2012) (IMF WORLD BANK POOL) INTERNATIONAL MONETARY FUND (IMF) MANAGING DIRECTOR CHRISTINE LAGARDE WALKING INTO NEWS CONFERENCE LAGARDE WALKING AND SITS DOWN JOURNALIST ASKING QUESTION (SOUNDBITE) (English) IMF MANAGING DIRECTOR CHRISTINE LAGARDE SAYING: "If you were to ask me what I expect what this IMF annual meeting, we expect action. And we expect courageous and co-operative action on the part of our members." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (English) IMF MANAGING DIRECTOR CHRISTINE LAGARDE SAYING: "Where should we see action? Certainly in europe, and specifically in the Euro zone, which is still at this point the epicentre of the crisis and where most urgent action is needed. Action has already occurred. The European Central bank with its LTRO earlier in the year and more importantly with the outright monetary transactions." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (English) IMF MANAGING DIRECTOR CHRISTINE LAGARDE SAYING: "The meeting is extra-ordinarily well organized and we have alot of substantive issues to discuss, great debates, great seminars. So I think they lose out by not attending the meeting and they will be missing something great." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (English) IMF MANAGING DIRECTOR CHRISTINE LAGARDE SAYING: "So all economic players and partners in this region are very critical for the global economy and certainly at the IMF where we encourage cooperation. We are a forum for dialogue and improved relationships. We hope that differences, no matter how long standing, can be resolved harmoniously and expeditiously so that from an economic point of view the cooperation can continue and can be beneficial not only to those countries, not only to the Asia-Pacific region, but also to the global economy." NEWS CONFERENCE IN PROGRESS
  • Embargoed: 27th October 2012 13:00
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: International Relations,Economic News
  • Reuters ID: LVA2JSH7PTOZIH35E3XNUJHCT65E
  • Story Text: The IMF prodded the world's rich countries for swifter action on Thursday (October 11) as Europe's debt crisis drags on while the United States and Japan show scant progress handling their budget deficits.
    Christine Lagarde, managing director of the International Monetary Fund, said political wrangling added to economic uncertainty, slowing growth in both advanced and emerging economies. The IMF cut its global growth forecast this week for the second time since April.
    "If you were to ask me what I expect what this IMF annual meeting, we expect action. And we expect courageous and co-operative action on the part of our members," Lagarde said in a news briefing ahead of the IMF's twice-yearly meetings held this time in Tokyo.
    The IMF cut its global growth forecast this week for the second time since April and has expressed frustration with Europe's piecemeal response to its debt crisis and warned that a recent respite in borrowing costs for debt-laden countries such as Spain may prove short-lived unless euro zone leaders come up with a comprehensive and credible plan.
    "Where should we see action? Certainly in europe, and specifically in the Euro zone, which is still at this point the epicentre of the crisis and where most urgent action is needed. Action has already occurred. The European Central bank with its LTRO earlier in the year and more importantly with the outright monetary transactions," Lagarde said.
    Standard & Poor's cut its rating on Spain on Wednesday (October 10) to a level just above junk territory, and Moody's may soon follow.
    The IMF itself is struggling to muster the sort of decisive action that Lagarde wants to see from world leaders. Its 188 member countries meet on Friday and Saturday, and will fall short of a goal to implement voting reforms that would give large emerging economies greater say and elevate China to the No. 3 spot in IMF power.
    A territorial dispute between Japan and China added another element of disharmony. China's top central bank and finance ministry officials backed out of the meetings and sent deputies to Tokyo instead.
    "The meeting is extra-ordinarily well organized and we have alot of substantive issues to discuss, great debates, great seminars. So I think they lose out by not attending the meeting and they will be missing something great," Lagarde said of the Chinese delegation.
    Lagarde however said she hoped the world's second- and third-largest economies could resolve their differences.
    "So all economic players and partners in this region are very critical for the global economy and certainly at the IMF where we encourage cooperation. We are a forum for dialogue and improved relationships. We hope that differences, no matter how long standing, can be resolved harmoniously and expeditiously so that from an economic point of view the cooperation can continue and can be beneficial not only to those countries, not only to the Asia-Pacific region, but also to the global economy," Lagarde said.
    Japan is scheduled to host the IMF and World Bank annual meetings for the first time in nearly half a century. About 20,000 people are expected to attend the event, making it one of the world's largest international conferences.
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