World Bank, IMF Urge U.S. to End Gov’t Shutdown

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money-graphThe World Bank and the International Monetary Fund have called on U.S. leaders to take steps to reopen the federal government, The New York Times reported Sunday.

Annie Lowrey and Nathaniel Popper write the U.S. debt ceiling issue overshadowed the international recovery agenda at joint meetings of the agencies held over the weekend in Washington.

Treasury Secretary Jacob J. Lew and the Federal Reserve Chairman Ben Bernanke were present during the talks, according to the report.

IMF Managing Director Christine Lagarde told NBC News in an interview that a “lack of certainty” and a “lack of trust in the U.S. signature” could put the world economy at risk.

The Times reports World Bank and IMF leaders predict that even a near-default will have an effect on borrowing costs and global economic growth.

The IMF, which assists nations with sovereign debt, has been working on a plan in case the U.S. problem leads to a market disruption.

“The closer we get to the deadline the greater the impact will be for the developing world,” Yong Kim, president of the World Bank, told The Times.

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