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Athens Macedonian News Agency: News in English, 14-05-12
CONTENTS
[01] IMF underestimated the impact of fiscal consolidation on Greece's
growth, Lagarde says
[01] IMF underestimated the impact of fiscal consolidation on Greece's
growth, Lagarde says
BERLIN (ANA-MPA/ F. Karaviti)- The International Monetary Fund (IMF)
underestimated the impact of fiscal consolidation on economic growth, IMF
managing director Christine Lagarde told German newspaper Handelsblatt
in an interview, citing Greece as an example.
Lagarde acknowledged that Europe was recovering, but warned against
"misleading security" because of falling bond prices. "The recovery is
underway. That is correct," she said. "Some countries have successfully
implemented the programmes, but that does not mean the crisis is over
and our mission accomplished."
In the case of Greece, the deep and enduring political crisis caused
further uncertainty among investors, Lagarde noted.
"I am confident that fiscal consolidation and growth-friendly steps do
not exclude one another. This is not an easy case, but highly indebted
countries cannot avoid a significant reduction of their debt if they
want to restore confidence in the markets," Lagarde underlined.
"A country that can raise virtually no money from the markets, cannot
afford to promote fiscal consolidation with small steps. This was the
case in Greece," she added.
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