IMF resources weak for potential crisis needs: Lagarde

The International Monetary Fund's financial resources would not be enough to meet potential crisis needs, IMF chief Christine Lagarde said Saturday. "Our lending capacity of almost $400 billion looks comfortable today but pales in comparison with the potential financing needs of vulnerable countries and crisis bystanders," Lagarde said.
"It will be useful to discuss, soon, the needs and contingency options," the managing director said in an action plan for the 187-nation institution unveiled at IMF and World Bank meetings in Washington. "We must be prepared to respond rapidly, flexibly and possibly on a larger scale," she said.
Wit risks rising to global growth, a new economic shock could occur that hits countries hard, particularly the poorest countries. "This situation heightens the importance of prompt entry into force of the 2010 quota increase and of the next review of quotas," she said. The reform calls for doubling the IMF's quota shares, but it has not yet won ratification from enough national parliaments to take effect.