Europe, Imf | featured news

The International Monetary Fund on Tuesday shaved projections for global economic growth for this year and next to take into account sharp government spending cuts in the United States and the latest struggles of recession-stricken Europe.

The International Monetary Fund will contribute 1 billion euros ($1.29 billion) over three years to the 10 billion euro bailout for Cyprus, IMF Managing Director Christine Lagarde said in a statement on Wednesday.

French prosecutors say they are dropping an investigation into former IMF chief Dominique Strauss-Kahn over a "gang rape" alleged to have taken place in Washington. The woman who made the complaint has retracted her evidence, they added. Mr Strauss-Kahn, 63, is still under investigation with three other men over their alleged roles in a prostitution ring. He denies the allegations.

Spain's banks need at least 40 billion euros (about $46 billion) in fresh capital to preserve the country's financial stability, the International Monetary Fund said Friday in an eagerly-awaited report.

The International Monetary Fund says it has not been asked by Spain for a bailout and has not begun preparing one.

A French prosecutor on Monday opened a preliminary investigation into allegations of rape in a Washington hotel by former IMF chief and one-time French presidential hopeful Dominique Strauss-Kahn.

Political leaders in Greece need to show the resolve to stay in the euro zone, which will require Athens to stick to the terms of its rescue package, International Monetary Fund Managing Director Christine Lagarde said on Thursday.

The global economy has stepped back from the brink of danger and signs of stabilization are emerging from the euro zone and the United States, but high debt levels in developed markets and rising oil prices are key risks ahead, the IMF said on Sunday.

Debate over Greece’s rescue plan now shifts to the International Monetary Fund, which must decide if it is willing to risk more on a bailout effort that the fund’s own analysis shows has a strong probability of failing.

Dominique Strauss-Kahn was taken into custody in connection with an investigation into an alleged prostitution ring operating in France and Belgium.