Christine Lagarde reportedly warned coronavirus could cause the worst economic disaster since the fi
European governments and central banks must act quickly and collectively to counteract the economic costs of coronavirus, Christine Lagarde said on Tuesday, according to Bloomberg.
If they fail to act, the continent "will see a scenario that will remind many of us of the 2008 Great Financial Crisis," the European Central Bank president warned on a conference call with European leaders.
Lagarde said European policymakers were weighing options such as "super-cheap funding" and boosting liquidity and credit, Bloomberg reported.
She told the leaders that they risked "the collapse of part of your economies" if they didn't take brave and decisive measures.
European governments and central banks must mount a fast, coordinated response to the coronavirus epidemic or face devastating consequences, Christine Lagarde warned on a conference call Tuesday, a person familiar with the European Central Bank president's comments told Bloomberg.
Lagarde reportedly told European leaders that if they failed to act, the continent "will see a scenario that will remind many of us of the 2008 Great Financial Crisis." The economic fallout will probably be temporary, however, if appropriate measures are taken, she added.
Ahead of the ECB's Thursday meeting, policymakers are weighing options such as "super-cheap funding" and boosting liquidity and credit, Lagarde reportedly said on the call. The central-bank boss cautioned, however, that those types of measures would succeed only if governments worked to shore up bank lending in vulnerable areas, Bloomberg said.