Managing Director Christine Lagarde of the International Monetary Fund (IMF) today issued the following statement after an Executive Board discussion on the adequacy of Fund resources as part of the ongoing review of Fund resources:

“Today’s discussion on the adequacy of Fund resources was a welcome opportunity to assess whether they are sufficient for the IMF to fulfill its mandate and to play a full and constructive role in securing global stability. Following the request of our membership last year through the International Monetary and Financial Committee and the general support by the G20 leaders at the Cannes summit, today’s discussion was an important step.

“The biggest challenge is to respond to the crisis in an adequate manner and many Executive Directors stressed the necessity and urgency of collective efforts to contain the debt crisis in the Euro Area and protect economies around the world from spillovers and excessive output/income contractions. In this context, they welcomed the recently announced commitment of European members to contribute to the Fund’s resources, while stressing the importance of European firewalls and other policies being sufficiently strong to respond to the crisis in the Euro Area.

“I welcome the recognition of the importance of ensuring adequate Fund firepower to help defuse the current global economic weaknesses and regional challenges. To this end, Fund management and staff will explore options for increasing the Fund’s firepower, subject to adequate safeguards. I welcome Executive Directors’ collective interest in resolving the crisis and securing global economic stability.”