'No quick fix' to global economic problems

Monday, 25 Jun 2012

Anyone who is expecting that there will be a magic solution to global financial problems is not likely to be satisfied any time soon, one major organisation has indicated.

The Bank for International Settlements (BIS) explained in its 82nd annual report that the global economy is still unbalanced even five years after the financial crisis began.

In many respects, the goals of balanced economic policies and growth are still yet to be realised and once achieved, should reflect positively on the financial markets.

Christian Noyer, BIS chairman and governor of the Bank of France, said: "We have yet to achieve the goal of a strong and stable financial environment for the global economy.

"To get there, the international community must intensify its cooperative efforts to reduce global financial imbalances and improve international financial regulation."

This follows comments from managing director of the International Monetary Fund Christine Lagarde, who told the G20 summit that people need to have more confidence in the global economy.

She said that conditions are especially tough at the moment, but more steps need to be taken to enable a full recovery to get underway.