IMF head calls for government action on credit crisis

by Gill Montia

Story link: IMF head calls for government action on credit crisis

International Monetary Fund (IMF) head, Dominique Strauss-Kahn, is calling for government action to take control of the credit crisis.

Mr Strauss-Kahn is warning that the ongoing turmoil in the money markets is having an impact on world growth.

He believes that the “need for public intervention is becoming more evident” and that this could take the form of intervention in the securities, housing or banking sectors.

The comments come ahead of a meeting between the IMF, World Bank, finance ministers and central bank governors, planned for this coming weekend in Washington DC.

Prior to the summit, Chancellor of the Exchequer, Alastair Darling, will be calling on finance ministers for the formation of a detailed plan of action to tackle the crisis.

Meanwhile, Mr Strauss-Kahn has stated that the IMF will be revising its global economic forecasts during the coming days.