ECONOMY

Lagarde confirms IMF to decide on Greek loan Friday

The International Monetary Fund will meet on Friday to discuss the next round of aid to Greece, the Fund’s new managing director Christine Lagarde told reporters on Wednesday.

“There is an IMF board meeting which is scheduled for Friday at which we shall consider the fourth review and eventually the payment of the fifth tranche that falls due,» the former French finance minister said.

Lagarde also urged all Greek political parties to follow counterparts in Ireland and Portugal to come together and back sweeping reforms that are part of the IMF-European Union rescues of those countries.

Lagarde said the global economy was rebounding from the 2007-2009 financial crisis but unevenly as growth in old-line industrial nations trails key emerging markets such as China and India.

She acknowledged demands that institutions such as the IMF better reflect the shifting balance of power in the global economy and said the idea of creating a top-ranking post at the IMF to give a higher profile to emerging markets was «not a bad idea.”

“The world is going to continue to change,» she said. «We have these tectonic plates that are moving at the moment, and that needs to be reflected in the composition of governance and employment at the Fund.”

While noting the global recovery was unbalanced, she tried to sound a note of reassurance that it was firmly in place.

“When we look at our growth forecasts for 2011, 2012, we are clearly on the rebound and things are improving and are getting better when compared with the situation as it was in 2009 at the height of the crisis,» Lagarde said.