Call for global intervention to combat credit crunch

News Article - 08 April 2008
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The head of the International Monetary Fund (IMF) has called on world leaders to act now to combat the effects of the recent credit crunch.

According to Dominique Strauss-Khan, it is "becoming more evident" that intervention is needed to prevent market turmoil worldwide and the credit squeeze is not limited to the US alone.

Mr Strauss-Khan told the Financial Times that world growth was threatened by the current credit crisis and global action was needed to support the international securities market and housing sectors.

Speaking ahead of a meeting of world financial leaders in Washington DC, the former French finance minister echoed calls from the Institute of International Finance, which states last week that the case for government intervention is "growing".

Global productivity could be threatened by the recent economic slowdown in many markets and Mr Strauss-Kahn predicts that the crises could spread to developing nations such as India and China unless international action is forthcoming.

As the credit squeeze continues and companies face tighter budgets, firms are advised to invest in online accounting software to control costs and keep track of their business health.

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