7 Jul 2012

IMF warns global growth sliding

10:04 pm on 7 July 2012

The head of the International Monetary Fund, Christine Lagarde, has warned that the global economic situation is becoming increasingly worrisome.

Speaking in Tokyo, Ms Lagarde said the IMF would probably reduce its estimate for global growth this year.

She also called for the banking sector to implement the reforms it promised after the financial meltdown of 2008.

Ms Lagarde says risky and unethical practices by banks are holding up a global recovery.

"They have to be back to supporting, not destabilising the economy, back to function instead of dysfunction, back to service, and not exclusively profit forgetting about service."