More countries may need IMF bailout

LONDON – International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn said yesterday he feared more countries may need IMF bailout packages and said it was not inconceivable that Britain might one day need help.

‘I’m afraid, we’re not hoping that, but I’m afraid that some other countries, not only in eastern Europe, but all around the world (may need help),’ he said when asked if he believed other countries, particularly in Europe, would have to seek IMF bailouts.
He was speaking in a BBC interview, an excerpt of which was broadcast yesterday.
The IMF has recently agreed packages for several countries, including Iceland, Hungary and Ukraine.
Strauss-Kahn said he did not think Ireland or Britain would need an IMF bailout to overcome the effects of the global financial crisis.
On Britain, which had to seek IMF help in 1976, he said: ‘It has been part of the history several years ago, but it is not the case today.’
Asked if he was absolutely confident the British government might never seek IMF help, he said: ‘We never know, you know. One year ago, if somebody had said that a Republican government in … the US, would nationalise part of the banking system you would have said it’s totally impossible. It happened. So never say never.’
‘But, at this juncture, there is no risk for advanced economies (except for) some very small advanced economies like Iceland, for instance, for specific reasons, to need some kind of bailout,’ he said. -Nampa-Reuters