IMF head Christine Lagarde warns of 'additional tension and acute stress' in eurozone | iNFOnews | Thompson-Okanagan's News Source

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IMF head Christine Lagarde warns of 'additional tension and acute stress' in eurozone

German Finance Minister Wolfgang Schaeuble speaks with the media prior to a meeting of eurozone finance ministers in Luxembourg on Thursday, June 21, 2012. As the cracks in the euro currency seem to grow even wider, finance ministers from the 17 countries that use the currency brainstorm Thursday on how to stabilize it. (AP Photo/Virginia Mayo)

LUXEMBOURG - The head of the International Monetary Fund is acknowledging the acute stress under which the euro currency is suffering and promising to send a mission to Greece by Monday.

Christine Lagarde said in Luxembourg late Thursday that "We are clearly seeing additional tension and acute stress applying to both banks and sovereigns in the euro area."

She called for more relaxed monetary policy by the European Central Bank, and for Europe to issue bonds backed by all countries.

In addition, Jean-Claude Juncker, the head of the eurogroup, said that Spain would make a formal request for financial assistance by next Monday.

Eurogroup finance ministers met Thursday evening in Luxembourg to try to find ways to stabilize the euro currency, which is threatening to crack under pressure of national debts and high borrowing costs.

News from © The Associated Press, 2012
The Associated Press

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