UPDATE 1-IMF’s Lipsky: global economy needs policy support

* Considerable risks remain to global economic outlook

* Levy on financial institutions an option
(Adds quotes, comments)

TOKYO, May 18 (BestGrowthStock) – The global economy is still in need
of policy support and the Greek debt crisis has shown
considerable risks remain to the global economic outlook, a
senior IMF official said on Tuesday.

“The global recovery remains sluggish, uneven and still in
need of policy support … As recent events in Greece have shown,
risks remain considerable,” IMF First Deputy Managing Director
John Lipsky said in a symposium in Tokyo.

Lipsky also said the measures European authorities took to
stabilise financial markets will help recover market functioning
and restore market confidence.

“Together with strong implementation by euro area countries,
notably through actions to put public finances on a sustainable
path, they will help sustain the global recovery,” he told the

The IMF will provide up to 250 billion euros as part of a $1
trillion European Union-IMF package of assistance to help heavily
indebted and deficit-ridden EU and euro zone countries stave off
a debt crisis.

On regulatory reforms, Lipsky said bank levies could be an

“Some form of levy, charge or tax on financial institutions
potentially could serve as a complement to enhanced regulation
and supervision,” he said.

The issue, expected be raised at the next G20 summit meeting
in June, has been contentious among G20 countries. While European
countries such as Germany are pushing for bank levies, others
such as Canada are opposed.
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(Reporting by Hideyuki Sano; Editing by Michael Watson)

UPDATE 1-IMF’s Lipsky: global economy needs policy support