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The Crisis of the Euro
IMF promises to act on the Crisis of the Euro
The International Monetary Fund promised to act firmly to fight the crisis of sovereign debt in the "Euro area", with countries around the world to warn of the erosion of European Union economies.
Different member states of the International Monetary Fund (IMF), including China, the United States and Brazil, seized the annual meeting of the Fund and the World Bank to ask the EU to act quickly against the crisis in the "Euro area", and heard the promise that European leaders will take all necessary measures to prevent the escalation of the current situation.
The policy board of the IMF admitted that the EU - whose countries are the 27 largest shareholders of the fund - is at the epicenter of the crisis and ensured that it will strive to "restore confidence and financial stability" to help the world economy back to grow.
In a press conference, the Director of the IMF said the fund needs to raise capital that is available if the Eurozone crisis will worsen.
Also at the press conference, Tharman Shanmugaratnam, Minister of Finance of Singapore, which chairs the Monetary and Financial Committee of the IMF, said that there is a "collective will" to prevent the escalation of the crisis, a promise made after the United States and major emerging economies have asked the Europeans to act faster and better.
Zhou Xiaochuan, who leads the Chinese Central Bank, said that "the crisis of sovereign debt in the Euro area must be addressed quickly to stabilize market confidence".
The Finance Minister of Brazil, Guido Mantega, said that European leaders must take steps to "stop the contagion to countries beyond the periphery of the "Euro Area"", such as Portugal, Greece and Ireland.
Timothy Geithner, Treasury Secretary of State for US, considered the European debt crisis "the biggest risk facing the global economy" today and said they still needed more to create a wall to prevent further infections.