IMF Strauss-Kahn: Global Econ Has Turned The Corner

ISTANBUL -- The global economy has "turned the corner" after its biggest contraction in decades, but downside risks persist, especially due to rising unemployment, Dominique Strauss-Kahn, the managing director of the International Monetary Fund, said Friday.

Banks still need to be weaned off their penchant for taking excessive risks, regulatory reform of the financial sector must proceed, and policy makers should be aware that any growth recovery registered so far has been due to fiscal stimulus packages, Strauss-Kahn said at a press conference here.

However, the IMF can play a key role as an international lender of last resort, a function that the multilateral lender's founders always envisioned, Strauss-Kahn said.