IMF chief Christine Largarde is visiting Latin American countries in a bid to drum up more support for the IMF. The international lender needs all the funding help it can get, if it wants to deal with the spiraling debt crisis in Europe. Largarde says major emerging economies ARE prepared to lend to the IMF to help Europe if need be.
Europe’s debt woes seem to get worse by the day. Troubled countries might turn to the IMF, the international lender of last resort as a possible solution. The fund would need to boost its current resources should several countries come knocking on its doors seeking aid. Managing Director, Christine Largarde, is in Mexico as part of her Latin America trip to seek fresh support for the IMF.
Largarde said: "The IMF has to stand ready to help any of its 187 members when there is a crisis looming on the horizon"
Mexico’s central bank governor, Agustin Carstens, met with Largarde and says his country would work closely with the IMF in the face of a deepening economic crisis in Europe.
Agustin Carstens, governor from Bank of Mexico said: "Without a doubt Mexico as a member of the G20 will be more than ready to collaborate and lend resources to give major reach and ability and certainly will be one of the most important jobs for the Mexican presidency, to look how to fortify financially the Monetary Fund. Mexico has benefited on various occasions from the financial support of the fund and we know that’s a result of international cooperation. Without a doubt, Mexico will help the efforts that come from the G20."
One of Mexico’s top priorities on its G20 checklist includes finding a resolution to the euro zone’s debt crisis, as well as reforms to the IMF. Mexican President, Felipe Calderon, says that the eurozone HAS the tools needed to solve the current crisis, and called for stronger commitments to sound economic policy by major industrialized countries.