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| IMF head calls for extra funding | IMF head calls for extra funding |
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| The head of the IMF has said it will need more funding if it is to respond to calls for it to play a bigger role in aiding a global economic recovery. | The head of the IMF has said it will need more funding if it is to respond to calls for it to play a bigger role in aiding a global economic recovery. |
| Dominique Strauss-Kahn told the BBC that the IMF was likely to need at least $100bn (£68bn) of extra funding over the course of the next six months. | Dominique Strauss-Kahn told the BBC that the IMF was likely to need at least $100bn (£68bn) of extra funding over the course of the next six months. |
| Mr Strauss-Kahn also called on states to continue cutting interest rates. | Mr Strauss-Kahn also called on states to continue cutting interest rates. |
| His comments came as the Japanese economy officially entered a recession, shrinking 0.1% in the third quarter. | His comments came as the Japanese economy officially entered a recession, shrinking 0.1% in the third quarter. |
| This follows a 0.9% contraction in the world's second-biggest economy in the previous quarter from April to June. | This follows a 0.9% contraction in the world's second-biggest economy in the previous quarter from April to June. |
| On Saturday, G20 leaders agreed at a summit in Washington to co-operate closely to stimulate worldwide economic growth, with both developed and developing countries working to cut taxes and interest rates, and increase government spending. | On Saturday, G20 leaders agreed at a summit in Washington to co-operate closely to stimulate worldwide economic growth, with both developed and developing countries working to cut taxes and interest rates, and increase government spending. |
| Finance ministers were also asked to discuss the longer-term reform of financial regulation, including executive pay and risky lending. | Finance ministers were also asked to discuss the longer-term reform of financial regulation, including executive pay and risky lending. |
| Their proposals will be discussed at a follow-up summit in April. | Their proposals will be discussed at a follow-up summit in April. |
| 'Safety net' | 'Safety net' |
| The weekend's G20 meeting brought together leading industrial powers, such as the US, Japan and Germany, and emerging market countries like China, India, Argentina, Brazil and others - representing 85% of the world's economy and two-thirds of its population. | The weekend's G20 meeting brought together leading industrial powers, such as the US, Japan and Germany, and emerging market countries like China, India, Argentina, Brazil and others - representing 85% of the world's economy and two-thirds of its population. |
| The number of countries having problems at the same time has dramatically increased and they come to the IMF asking for support Dominique Strauss-KahnManaging Director, International Monetary Fund G20 summit: In quotesG20 declaration: Full text | The number of countries having problems at the same time has dramatically increased and they come to the IMF asking for support Dominique Strauss-KahnManaging Director, International Monetary Fund G20 summit: In quotesG20 declaration: Full text |
| The communique issued after the summit stressed the International Monetary Fund's "important role in crisis response", welcomed its new short-term liquidity facility, and urged the ongoing review of its instruments and facilities to ensure flexibility. | The communique issued after the summit stressed the International Monetary Fund's "important role in crisis response", welcomed its new short-term liquidity facility, and urged the ongoing review of its instruments and facilities to ensure flexibility. |
| The BBC's Andrew Walker says the organisation does have substantial resources to lend to countries needing help to weather the economic storms. | The BBC's Andrew Walker says the organisation does have substantial resources to lend to countries needing help to weather the economic storms. |
| Before the summit the figure was $250bn, and then Japan made a commitment to provide another $100bn, our correspondent says. | Before the summit the figure was $250bn, and then Japan made a commitment to provide another $100bn, our correspondent says. |
| But in an interview with the BBC, the IMF's managing director said that although it did have money enough for the immediate future, it was likely to need more. | But in an interview with the BBC, the IMF's managing director said that although it did have money enough for the immediate future, it was likely to need more. |
| "The number of countries having problems at the same time has dramatically increased and they come to the IMF asking for support," Mr Strauss-Kahn said. "So we need more resources." | "The number of countries having problems at the same time has dramatically increased and they come to the IMF asking for support," Mr Strauss-Kahn said. "So we need more resources." |
| G20 leaders have pledged to work together to restore global growth | G20 leaders have pledged to work together to restore global growth |
| He described the Japanese prime minister's offer on Friday as a "huge step forward", saying it meant the IMF now had "enough resources to address the problem we are facing today". | He described the Japanese prime minister's offer on Friday as a "huge step forward", saying it meant the IMF now had "enough resources to address the problem we are facing today". |
| "The question is to be able to face the problem in six months from now, and I think all the heads of state and government are aware of the need for a strong IMF," he warned. | |
| Mr Strauss-Kahn said the organisation would probably need around $100bn in additional funding in order to cope with increased demand. | Mr Strauss-Kahn said the organisation would probably need around $100bn in additional funding in order to cope with increased demand. |
| The IMF, he added, would seek to provide "some sort of safety net to protect the most vulnerable part of the population from the consequences of the adjustment". | The IMF, he added, would seek to provide "some sort of safety net to protect the most vulnerable part of the population from the consequences of the adjustment". |
| Rate cuts | Rate cuts |
| The former French finance minister also called on countries to tackle the economic crisis themselves by cutting interest rates and using government finances. | The former French finance minister also called on countries to tackle the economic crisis themselves by cutting interest rates and using government finances. |
| I think now [the ECB has] room to decrease the interest rate, but nevertheless the stress has to be put on fiscal policy Dominique Strauss-Kahn | I think now [the ECB has] room to decrease the interest rate, but nevertheless the stress has to be put on fiscal policy Dominique Strauss-Kahn |
| He said the European Central Bank (ECB) had room for another rate cut. | He said the European Central Bank (ECB) had room for another rate cut. |
| "In some parts of the world - Japan, the United States - interest rates have been cut very much, but it can be done more aggressively in other parts," he said. | "In some parts of the world - Japan, the United States - interest rates have been cut very much, but it can be done more aggressively in other parts," he said. |
| "I think now [the ECB has] room to decrease the interest rate, but nevertheless the stress has to be put on fiscal policy," he added. | "I think now [the ECB has] room to decrease the interest rate, but nevertheless the stress has to be put on fiscal policy," he added. |
| Our correspondent says Mr Strauss-Kahn's comments were not an explicit call for action, but they suggested at the very least that he would glad if the ECB cut rates again soon. | Our correspondent says Mr Strauss-Kahn's comments were not an explicit call for action, but they suggested at the very least that he would glad if the ECB cut rates again soon. |
| Critics have said the bank has been too slow to reduce interest rates, in sharp contrast to, for example, the US Federal Reserve. | Critics have said the bank has been too slow to reduce interest rates, in sharp contrast to, for example, the US Federal Reserve. |