IMF Says Italy and Spain Have Not Asked for Help

The IMF has not received any funding requests from Italy or Spain to avert a deepening of the European debt crisis, which needs a quick and comprehensive solution.

Managing Director Christine Lagarde revealed the news on Monday while in Lima, Peru.

She said the International Monetary Fund can only make loans when governments ask for them and said help so far has only been extended to Portugal, Ireland and Greece. 

[Christine Lagarde, IMF Managing Director]:            

"The IMF lends when it is requested by a country that needs assistance. It can be precautionary or associated with a program. At this point in time, we have not received any request from Italy nor are we negotiating with either Italy or Spain. So I don't know where La Stampa receives its information but it is not from me." 

She added that the IMF was willing to help euro zone member nations.

[Christine Lagarde, IMF Managing Director]:           

"The Fund is already quite engaged. If you look at the euro zone, it currently has under program Ireland, Portugal, Greece and it has offered and is currently organizing the fiscal monitoring of Italy. The IMF is a partner to all its members and it clearly helps in cases where countries request support. It can also help in terms of advising, engaging, and helping in the engineering of comprehensive solutions. And as far as the European situation is concerned, clearly we see the need for a comprehensive, rapid set of proposals that will form a comprehensive solution."

Lagarde is visiting fast-growing Peru and Latin American heavyweights Brazil and Mexico this week to drum up support for more global cooperation.

Analysts say the IMF may be looking to emerging markets to help increase the size of its credit lines as European woes mount.