06 October 2011 19:33 [Source: ICIS news]
WASHINGTON (ICIS)--The European debt crisis poses a major global economic risk and could cause “significant damage” to the ?xml:namespace>
He said he and Treasury Department senior staff “are working closely alongside the IMF [International Monetary Fund] to encourage European leaders to move more forcefully to put in place a comprehensive strategy to stabilize the situation”.
Although he did not name a specific dollar or euro value for the new EU financial rescue fund being considered, he said it must be large enough to be credible.
“The critical imperative is to ensure that the governments and the financial systems under pressure have access to a more powerful financial backstop,” he said.
Geithner said while US banks and other financial institutions now have little direct exposure to
“Our direct financial exposure to those governments and their financial institutions is quite small,” he said.
However, he added, “Europe is so large and so closely integrated with the
($1 = €0.75)
Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy
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