IMF fails to agree on eurozone crisis

A meeting of the International Monetary Fund (IMF) has failed to reach an agreement on a plan to respond to the eurozone debt crisis and hold back recession.

Focusing on Greece, nearly all participants at the event believed that a Greece default now looks inevitable while Greece itself said that such situation could be avoided.

The US Treasury Secretary Tim Geithner has put the pressure firmly on Germany to agree to a new injection of cash.

“The threat of cascading default, bank runs, and catastrophic risk must be taken off the table, as otherwise it will undermine all other efforts, both within Europe and globally,” Geithner said.

The meeting officially concluded that a variety of proposals already agreed by the eurozone must be ratified before any new plans could be decided upon.

However, German Finance Minister Wolfgang Schauble said that those plans agreed were under threat of being redundant.

“One has to see whether what has been envisaged in June, July, is still sustainable in the light of more recent developments,” Schauble added.

Meanwhile, the focus of the meeting shifted to an upcoming November meeting of the G20 to provide more concrete global proposals to avert recession.