Developing nations told to brace themselves for possible European recession
Abuja, 20 Dec – (ANA) - International Monetary Fund (MF) Director Christine Lagarde has urged developing countries to shore up their defences, especially foreign exchange reserves, against a possible European recession next year.
Lagarde was speaking during a visit to Nigeria in which she met President Goodluck Jonathan and Finance Minister Ngosi Okonjo-Iwaela and praised their planned economic reforms.
European finance ministers were discussing ways of boosting IMF resources to build a better firewall against the debt crisis on Monday, while also assessing plans for tighter euro zone fiscal rules that they hope will prevent the problems from worsening. .
But measures agreed in a summit on December 9 have failed to calm markets, and on Friday ratings agency Fitch said a 'comprehensive solution' to the crisis was beyond reach, warning that six euro zone economies, including Italy and Spain, could face credit downgrades. (ANA)
FA/ANA/20 December 2011------