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CNBC EXCLUSIVE: CNBC TRANSCRIPT: CNBC'S MARIA BARTIROMO SPEAKS WITH CHRISTINE LAGARDE, INTERNATIONAL MONETARY FUND MANAGING DIRECTOR, TODAY ON CNBC'S "THE CALL"

WHEN: TODAY, THURSDAY, SEPTEMBER 15TH

WHERE: CNBC'S "THE CALL"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with International Monetary Fund Managing Director Christine Lagarde today on CNBC's "The Call." All references must be sourced to CNBC.

For more of Maria's interview with International Monetary Fund Managing Director Christine Lagarde tune into CNBC's "Closing Bell with Maria Bartiromo" at 4PM ET today.

IMF Chief's Plan to Boost Global Growth: http://video.cnbc.com/gallery/?video=3000045797

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BARTIROMO: HI, TYLER. THANK YOU VERY MUCH. I AM SITTING RIGHT NOW WITH MS LAGARDE. IT IS GREAT TO HAVE YOU ON THE PROGRAM.

LAGARDE: THANK YOU MARIA.

BARTIROMO: FIRST TIME SEEING YOU SINCE YOU GOT THE JOB. CONGRATULATIONS. WE WERE JUST TAKING YOUR SPEECH LIVE AND WANT TO FOLLOW UP ON SOMETHING YOU SAID THAT WE ARE ENTERING A DANGEROUS PHASE OF THIS CRISIS. THAT WE'RE LOOKING AT THE EURO ZONE CRISIS WORSENING. CAN YOU ADD TO THAT AND TELL US A BIT MORE ABOUT WHAT YOU'RE SEEING?

LAGARDE: YES. BE HAPPY TO DO THAT. IT IS A DANGEROUS PHASE OF THE CRISIS BUT EQUALLY I THINK THERE IS A WAY OUT AND THERE IS A PATH TO RECOVERY, A PATH TO BETTER RECOVERY THAN WHAT WE HAVE SEEN. PART OF THE GRAY AREA WE'RE IN AT THE MOMENT HAS TO DO WITH SLOW GROWTH AND WE'RE SEEING FORECASTS BEING REVISED DOWNWARDS FROM MANY CORNERS, MANY INSTITUTIONS. WE WILL COME UP WITH OUR REVISIONS NEXT WEEK AT THE TIME OF THE IMF ANNUAL MEETING. SO THAT'S VERY CONCERNING. EQUALLY, THERE IS A PATH OUT OF IT. IT IS A COMBINATION OF MEDIUM-TERM, LONG-TERM, WELL-ANCHORED, DELIVERABLE FISCAL CONSERVATION MEASURES. THAT WILL REALLY REQUIRE A COMBINATION OF CUTTING PUBLIC SPENDING AND BROADENING A TAX BASE. WHAT WILL BE THE MIX OF BOTH IS, YOU KNOW, FOR POLITICAL LEADERS AND PARLIAMENTS TO DECIDE. IN THE SHORT TERM, MEASURES THAT WILL ACTUALLY ACCOMMODATE AND ENCOURAGE GROWTH THAT IS HERE. I MEAN, THE ECONOMIES ARE GROWING BUT THEY ARE GROWING MUCH MORE SLOWLY THAN WE HAD EXPECTED.

BARTIROMO: RIGHT.

LAGARDE: SO THAT'S THE CRISIS AS IT IS AT THE MOMENT. THAT'S THE DIFFICULT RECOVERY PATH. BUT THERE IS A WAY OUT OF IT AND IT'S A MATTER OF COLLECTIVE DRIVE AND DETERMINATION BY POLITICAL LEADERS TO ACTUALLY EMBARK ON THIS DIFFICULT AND SUBTLE PATH WHICH IS A PATH TO RECOVERY.

BARTIROMO: LET ME ASK YOU ABOUT THE SHORT-TERM PATH TO THIS RECOVERY. OF COURSE WE DID GET THE NEWS TODAY THAT THE CENTRAL BANKS OF THE WORLD ARE TRYING TO MOVE ON REMOVING THOSE DOUBTS, THAT THE EURO ZONE BANKS WILL BE ABLE TO BORROW DOLLARS FOR A LONGER TIME FRAME. A LOT OF PEOPLE LOOKING AT THE MOVES TODAY AND SAYING THIS WAS VERY SHORT TERM IN NATURE. WHAT DO YOU SAY TO THOSE SKEPTICS, THAT BASICALLY SAY THE BANKS NEED TO RECAPITALIZE AND THE EURO ZONE CRISIS AS YOU JUST SAID IS GETTING WORSE. WHY FOCUS ON SHORT-TERM MEASURES INSTEAD OF SOMETHING LARGER AND MUCH MORE COMPREHENSIVE?

LAGARDE: I'D SAY WHY BEING SKEPTIC? WHAT WE SAW TODAY WITH THE CENTRAL BANKS GETTING TOGETHER AND TOGETHER DECIDING TO OPEN ON AN LIMITED BASIS THOSE CREDIT LINE U.S. DOLLAR FACILITY IS ACTUALLY EXACTLY WHAT IS NEEDED. THE CENTRAL BANKS ACTUALLY GETTING INTO COLLECTIVE ACTION AND DEMONSTRATING THAT THERE IS TRUST IN THE SYSTEM AND THE SYSTEMS CAN ACTUALLY WORK WITH THEIR BACKING. WHATEVER PATH FOR RECOVERY WE SEE IN THE FUTURE WILL REQUIRE COLLECTIVE ACTION BY THE POLITICAL LEADERS AND GOVERNMENTS AND PARLIAMENTS AND A BIT MORE BIPARTISAN APPROACH TO LIFE AND THE ACTION BY THE CENTRAL BANKS. SO I WELCOME VERY MUCH WHAT HAS HAPPENED TODAY. IT SHOWS THAT THEY WILL DO WHAT IT TAKES TO ACTUALLY MAINTAIN STABILITY IN THE MONETARY SYSTEM AND IN THE FINANCIAL SYSTEM. I WELCOME IT.

BARTIROMO: AND OF COURSE THIS ONE DAY AFTER THE LEADERS OF GERMANY AND FRANCE YESTERDAY CAME OUT AND SAID GREECE STAYS IN THE EURO ZONE. SUGGESTING THAT EVEN IF, WHEN WE DO SEE GREECE DEFAULT, IT REMAINS IN THE EURO ZONE. PEOPLE ARE ASKING THE QUESTION, WHAT IS STOPPING EUROPEAN LEADERS FROM ACKNOWLEDGING PUBLICLY THAT GREECE CANNOT PAY WHAT IS OWED WITH A DETERIORATING ECONOMY, GROWING DEBT LOAD, WHY NOT PUBLICLY ACKNOWLEDGE THIS SO THAT GREECE CAN GO ON, PROCEED WITH THE BANKRUPTCY THAT IS ORDERLY AND THEN A PLAN TO RECAPITALIZE THE BANKS THAT ARE HIT AS A RESULT OF A DEFAULT AND THAT BANKRUPTCY?

LAGARDE: I THINK IT'S BECAUSE WHAT THEY WANT TO SEE HAPPENING IS EXACTLY WHAT PRESENT SARKOZY AND CHANCELLOR MERKEL SAID YESTERDAY. IN OTHER WORDS, GREECE FUTURE IS WITHIN THE EURO ZONE. NOW, THERE WILL BE A PRICE TO THAT. AND, CLEARLY, WHAT THEY ARE SHOWING AND SIGNALING VERY STRONGLY, THE TWO OF THEM, IS THAT THE EURO MEMBERS WANT GREECE TO BE PART OF THIS MONETARY ZONE. IT ECHOES VERY MUCH A STATEMENT THAT WAS CONTAINED IN THE JULY 21st AGREEMENT, WHICH HAS GONE A LITTLE BIT BELOW THE RADAR SCREEN, WHICH WAS PROVIDED A COUNTRY ON THE PROGRAM SUCH AS GREECE PERFORMS ITS OBLIGATIONS, THE EURO MEMBERS WILL FINANCIALLY SUPPORT IT. THAT'S A MAJOR STATEMENT. AND IT WAS IN A WAY REITERATED LAST NIGHT WHICH I THINK IS VERY REASSURING.

BARTIROMO: HOW DO YOU SEE THIS PLAYING OUT THEN? OF COURSE GREECE EXPECTED TO GET THAT NEXT TRONCH OF MONEY AT THE END OF THE MONTH. WE'VE ALL WATCHED THE SO-CALLED TROIKA, IMF, ECB, AND THE EU, WATCHED TARGETS BEING MISSED THAT YOU HAVE PUT IN PLACE. IS THE IMF WILLING TO LEND THAT NEXT TRONCH OF MONEY AT THE END OF THIS MONTH? GREECE HAS SAID IT RUNS OUT OF MONEY IN OCTOBER.

LAGARDE: THE IMF OPERATES IN THE SAME FASHION IN ALL ITS PROGRAMS. WE LOOK AT THE COMMITMENTS. WE CALL THEM CONDITIONALITIES. THAT'S WHAT THE COUNTRIES AND PROGRAMS HAVE TO DO. WE SEE WHERE THERE HAS BEEN IMPLEMENTATION AND WE RELEASE THE FINANCING TRONCH. IF THERE HAS BEEN NO IMPLEMENTATION, THEN WE DON'T PAY. SO THE CRITICAL MESSAGE THAT WAS GIVEN YESTERDAY BY PRESIDENT SARKOZY AND CHANCELLOR MERKEL EQUALS VERY MUCH OUR WAY OF DOING BUSINESS. IMPLEMENT AND YOU GET THE NEXT PAYMENT. AS I DID SAY IN THE PAST, IMPLEMENTATION, IMPLEMENTATION, IMPLEMENTATION. TIME IS RUNNING SHORT AND THE GREEK AUTHORITIES HAVE TO DELIVER, HAVE TO COME A LITTLE BIT MORE BIPARTISANLY IF THEY CAN TO MAKE SURE THE COUNTRY IS ON TRACK WHEN IT COMES TO ITS PROGRAM.

BARTIROMO: BUT IMPLEMENTATION HAS NOT HAPPENED. YOU'VE SEEN THESE TARGETS BEING MISSED AND SOME PEOPLE ARE SAYING WHY THROW MORE GOOD MONEY AFTER BAD?

LAGARDE: IMPLEMENTATION HAS TAKEN PLACE IN PARTS TAKEN PLACE. IF YOU LOOK AT THE MASSIVE EFFORT THEY TOOK LAST YEAR THEY CUT DEFICIT BY 5% IN A ONE-YEAR TIME FRAME. THAT IS A HUGE EFFORT. NOW, ONE WILL ARGUE NOT ENOUGH, NOT FAST ENOUGH, NOT SUFFICIENTLY DEEP. IT IS A QUESTION OF KEEPING AT IT AND AFTER THIS 5% DEFICIT CUT LAST YEAR THERE WAS FATIGUE AND REFORM AND REFORM FATIGUE AND THE MOMENTUM SLOWED DOWN. IT'S A QUESTION OF REIGNITING THE URGE TO DELIVER ON COMMITMENTS MADE BY THE GREEK GOVERNMENTS AND PARLIAMENT.

BARTIROMO: LET ME ASK YOU ABOUT SOMETHING YOU SAID A FEW WEEKS AGO AND THAT WAS THE EUROPEAN BANKS HAVE TO RAISE CAPITAL. IN FACT YOU SAID THAT THERE SHOULD BE A MANDATORY RULE THAT THE EUROPEAN BANKS RAISE CAPITAL. YOU SEEM TO HAVE BACKED AWAY FROM THAT. DO YOU BELIEVE EUROPEAN BANKS NEED TO RAISE CAPITAL?

LAGARDE: I'M NOT BACKING AWAY BUT I'D LIKE TO STEP BACK FOR A SECOND. THE REASON WE SAY THAT THE REASON I SAY THAT IS THAT CAPITAL BUFFERS MUST BE BUILT AND THE BANK MUST BE STRONG HAS TO DO WITH NOTHING ELSE BUT GROWTH AND JOBS. FOR GROWTH TO HAPPEN CREDIT HAS TO BE EXTENDED, FINANCED, FOR ENTERPRISES IN THE HOUSEHOLDS TO, YOU KNOW, INVEST IN NEW HOUSES, IN NEW MACHINE AND EQUIPMENT. THEY NEED CREDIT FROM THE BANKS. FOR BANKS TO ACTUALLY GIVE CREDIT THEY NEED A SOLID BALANCE SHEET. IF YOU LOOK AT THE COMBINATION OF THE DOUBTS LURKING AROUND ABOUT THE SOLIDITY OF THE SOVEREIGNS, IF YOU LOOK AT THE SLOWTH GROWTH THAT CLEARLY WEAKENS THE SOLIDITY OF THE EXISTING LOANS THAT HAVE BEEN MADE BY BANKS THEY HAVE TO HAVE MORE CAPITAL IN ORDER TO FINANCE GROWTH THAT WILL ITSELF CREATE JOBS. IT'S THE VIRTUOUS CIRCLE IN WHICH WE HAVE TO ENTER. OTHERWISE THE OPTION IS DELEVERAGING IS NOT FACILITATING CREDIT OF THE ECONOMY AND THAT IS NOT A GOOD PATH FOR GROWTH.

BARTIROMO: AND OF COURSE THIS IS EXACTLY WHAT THE MARKET IS FEELING. WE'RE WATCHING THE MARKET HAVE THE SAME EXPECTATION. MS. LA GRAND WE'LL LEAVE THE LIVE INTERVIEW HERE BUT I WANT TO CONTINUE SPEAKING WITH YOU PARTICULARLY ABOUT YOUR VISION FOR THE IMF AND HOW YOU EXPECT TO MAKE CHANGES. THANK YOU FOR JOINING US RIGHT NOW AND WE'LL HAVE THE SECOND PART OF THE INTERVIEW ON "THE CLOSING BELL" AT 4:00 THIS AFTERNOON. IN THE MEANTIME BACK TO YOU, TYLER AND MELISSA.

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