07-04-2008
IMF highlights approach for resolving credit crunch
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The head of the International Monetary Fund (IMF), Dominique Strauss-Khan, has called for global state-level intervention as a way to resolve the ongoing crunch on credit.
In an interview with the Financial Times, Mr Strauss-Khan has stressed that there is growing evidence to support the idea of public intervention.
"We've gone from the idea of the banks just providing access to extra cash, to intervening on odd occasions, then to the final line when were actually saying we're going to have to stand behind this and formally intervene overall in the market to support it," said Justin Urquhart Stewart, a representative from Seven Investment Management, in an interview with the BBC.
Mr Strauss-Khan also noted that, in addition to providing the housing sector with more support, such intervention could also be offered to the market for securities.
With a membership base of 185 different countries, the IMF is an international organisation with a history going back to 1944.