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First on CNBC: CNBC Transcript: IMF Managing Director Christine Lagarde Speaks with CNBC's Sara Eisen on "Squawk Alley" Today

WHEN: Today, Thursday, April 9th

WHERE: CNBC's "Squawk Alley"

Following is the unofficial transcript of a FIRST ON CNBC interview with IMF Managing Director Christine Lagarde and CNBC's Sara Eisen live from Washington, D.C., today, Thursday, April 9th during CNBC's "Squawk Alley" (M-F, 11AM-12PM ET). Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000369694 and http://video.cnbc.com/gallery/?video=3000369727.

All references must be sourced to CNBC.

CARL QUINTANILLA: GREECE HAS COMPLETED ITS PAYMENT TO THE IMF BUT STILL LOTS OF UNCERTAINTY REMAINS. SARA EISEN IN WASHINGTON WITH THE MANAGING DIRECTOR OF THE INTERNATIONAL MONETARY FUND, CHRISTINE LAGARDE. HEY, SARA.

SARA EISEN: HEY, CARL, THANK YOU VERY MUCH. MADAM LAGARDE ALWAYS GOOD TO SEE YOU AND HAVE YOU ON CNBC.

CHRISTINE LAGARDE: GOOD TO SEE YOU TOO.

EISEN: SO LET'S START WITH THE NEWS, CARL JUST MENTIONED IT ANOTHER CLOSE CALL FOR GREECE BUT IT APPEARS YOU HAVE RECEIVED THE PAYMENT TODAY.

LAGARDE: YES, WE HAVE RECEIVED FULL PAYMENT THAT WAS DUE TODAY AND I'M GLAD THAT THAT WAS DONE IN AN ORDERLY FASHION.

EISEN: BUT BY NO MEANS IS THE UNCERTAINTY OVER WITH. THERE'S ANOTHER BIGGIE COMING UP MAY 12thMUCH MORE. DO YOU HAVE ANY ASSURANCES THAT YOU'LL GET THAT ONE?

LAGARDE: YOU KNOW I THINK WHAT REALLY MATTERS IS NOW FOR THE GREEK AUTHORITIES AND THE THREE INSTITUTIONS, THE IMF, THE ECB AND THE EUROPEAN COMMISSION, TO GET ON WITH THE WORK. AND TO REALLY SEE HOW WE CAN TOGETHER IDENTIFY THE MEASURES THAT WILL TAKE GREECE OUT OF THE VERY BAD ECONOMIC SITUATION IT COULD BE IN IF THOSE MEASURES WERE NOT TAKEN. IT'S A MATTER OF RESTORING THE ECONOMIC RECOVERY, RESTORING FINANCIAL STABILITY, AND INDEPENDENCE, AND AT THE END OF THE DAY, MAKING SURE THAT GREECE'S FULL SOVEREIGNTY OVER ITS ECONOMIC FATE.

EISEN: WELL THEY HAVE REFORMS THEY NEED TO LAY OUT IN THE NEXT FEW DAYS IN ORDER TO GET ANOTHER BAILOUT. I KNOW YOU RECENTLY HAD A MEETING HERE IN D.C. WITH THE FINANCE MINISTER. IS THERE ANYTHING YOU CAN TELL US ABOUT THAT WHEN IT COMES TO THEM MAKING GOOD ON THESE REFORMS?

LAGARDE: IT WAS A GOOD PRODUCTIVE MEETING ON EASTER SUNDAY, WHICH ONLY GOES TO SHOW HOW DEDICATED AND DETERMINED WE ARE TO HELPING GREECE IN THE PROCESS. WE TALKED ABOUT HOW WE CAN IMPROVE THAT PROCESS BECAUSE IT'S BEEN DIFFICULT ON ALMOST A DAILY BASIS, HOW TO, YOU KNOW, SIT DOWN, COMPARE NUMBERS, LOOK AT MEASUREMENTS OF THE PROPOSED REFORMS, SEE HOW IT CONTRIBUTES TO THE FISCAL POSITION OF THE COUNTRY, HOW WE AIM AT REDUCING THE DEBT GOING FORWARD, AND WHAT WILL UNCLOG THE ECONOMY.

EISEN: DO YOU THINK THIS NEW GOVERNMENT IS FULLY COMMITTED TO STAYING IN AND NOT DEFAULTING ON A PAYMENT?

LAGARDE: I THINK THAT WE'RE ELECTED ON A POLITICAL PLATFORM WHICH HAS TO BE RESPECTED BUT EQUALLY THE OBJECTIVES THAT WERE PUT TOGETHER AND AGREED BY THE COMPANY TOGETHER WITH THE EUROPEAN PARTNERS HAVE TO BE PURSUED. ECONOMIC STABILITY, FINANCIAL STABILITY, INDEPENDENCE OF THE ECONOMY, AND MEMBERSHIP WITHIN THE EUROPEAN UNION AND EUROZONE.

EISEN: I WONDER, SO MUCH HAS CHANGED SINCE THE LAST TIME WE SPOKE ABOUT THIS, IN THE LAST FEW YEARS, YOU DON'T SEE CONTAGION ANYMORE, DON'T SEE AS BIG PROBLEMS SYSTEMICALLY WITH GREECE, DO YOU THINK EUROPE WOULD BE OKAY, BE ABLE TO HANDLE IF GREECE DOES DEFAULT ON ITS PAYMENT AND HAS TO LEAVE?

LAGARDE: I THINK IT WOULD BE A TERRIBLE SITUATION FOR THE GREEK PEOPLE. EQUALLY I THINK THAT THE FIREWALLS, THE BANKING UNION, THE STRENGTHENED FISCAL UNION, HAVE PUT THE EUROZONE IN A MUCH STRONGER AND BETTER POSITION THAN WHERE IT WAS FOUR YEARS AGO.

EISEN: YEAH. I WANT TO GET TO YOUR SPEECH. YOU CALLED THE GLOBAL ECONOMY, THE GLOBAL RECOVERY MODERATE AND UNEVEN. I KNOW THIS IS A SETUP FOR NEXT WEEK, THE IMF WORLD BANK MEETINGS BUT CAN YOU GIVE US MORE COLOR ABOUT HOW YOU'RE CHARACTERIZING WHERE WE ARE 6 1/2 YEARS AFTER THE FINANCIAL CRISIS?

LAGARDE: WELL, FIRST OF ALL, THERE IS RECOVERY. BUT AS I SAID, MODERATE AND UNEVEN. AND IT HAS SHIFTED A LITTLE BIT. ADVANCED ECONOMY IS DOING A BIT BETTER. EMERGING MARKETS AND LOW INCOME COUNTRIES, PARTICULARLY EMERGING MARKETS ECONOMIES DOING NOT AS WELL AND BEING MUCH MORE ALL OVER THE PLACE. INDIA, BRIGHT SPOT, CHINA MODERATING BUT IN A SUSTAINABLE FASHION. ON THE OTHER HAND, RUSSIA NOT IN GOOD POSITION. BRAZIL, COMPLETELY FLAT. AND A LOT OF MIDDLE EASTERN COUNTRIES IN A DIFFICULT POSITION FOR GEOPOLITICAL RISKS. WHAT WE SEE IS THAT THE SCARS OF THE FINANCIAL CRISIS HAVE LEFT A BIG MARK. IF YOU ADD TO THAT THE AGING OF POPULATIONS, IN ADVANCED ECONOMIES AS WELL AS IN SOME OF THE BIG EMERGING MARKETS AND THE LACK OF PRODUCTIVITY, THAT'S A PRETTY TOXIC COMBINATION AND WE NEED TO ENCOURAGE POLICYMAKERS TO TAKE THE RIGHT DECISIONS. BECAUSE WE CAN GET OUT OF THAT RISK OF NEW MEDIOCRE. IT DOESN'T HAVE TO BECOME THE NEW REALITY.

EISEN: ARE YOU SAYING -- I MEAN THE PHRASE IS SECULAR STAGNATION, THERE'S THIS WHOLE DEBATE.

LAGARDE: MY PHRASE IS NEW AND MEDIOCRE BECAUSE I THINK THAT YOU KNOW SECULAR STAGNATION IMPLIES YOU CAN'T DO ANYHTING ABOUT IT, YOU'RE STUCK.

EISEN: LARRY SUMMERS IS WRONG?

LAGARDE: NO NO I'M NOT SAYING HE'S WRONG. HE'S VERY OFTEN RIGHT. BUT WHAT I PREFER TO USE IS THIS NEW MEDIOCRE RISK. BECAUSE I BELIEVE THAT IF THE RIGHT MEASURES ARE TAKEN, IF THE NEW MULTILATERALISM IS EMBRACED WE CAN GET OUT OF IT. WE CAN HAVE BETTER GROWTH. WE CAN INCLUDE MORE WOMEN IN THE ECONOMY. WE CAN STABILIZE THE FINANCIAL SYSTEM AND MAKE IT STRONGER. BUT IT NEEDS DETERMINATION, COURAGE AND MEASURES THAT WILL TAKE THEM --

EISEN: I KNOW YOU'RE CALLING FOR ACTION. ON THE U.S. FOR A MOMENT, I KNOW YOU DESCRIBE THE DEVELOPED WORLD AS A BRIGHT SPOT. GROWTH GROUND TO A HALT IN THE FIRST QUARTER HERE IN THE U.S., THE IMPROVEMENT THAT WE HAVE SEEN IN THE JOBS MARKET, SORT OF BACKED OFF A BIT IS IT ALL BECAUSE OF THE WEATHER? DO YOU AGREE WITH THAT ASSESSMENT?

LAGARDE: YOU KNOW, JUST AS A SWALLOW DOES NOT MAKE SPRING AS WE SAY IN FRENCH, I SUPPOSE YOU SAY THAT AS WELL, I DON'T THINK THAT ONE LOWER NUMBER SHOULD GRAY THE WHOLE PICTURE WHICH IS OTHERWISE QUITE ROSY FOR THE U.S. ECONOMY. SO I THINK THAT IF YOU COMBINE THE BAD WEATHER, THE STRIKE IN THE HARBORS ON THE WEST COAST, YOU HAVE A FEW INGREDIENTS TO HAVE LOW GROWTH IN THE FIRST QUARTER. WE HAD THAT LAST YEAR, REMEMBER?

EISEN: IT'S TRUE, I REMEMBER. WE TALKED ABOUT IT. IS IT ROSY ENOUGH THAT WE ARE READY FOR AN INTEREST RATE INCREASE?

LAGARDE: WELL, WHATEVER – WHENEVER IT HAPPENS, I CERTAINLY HOPE THAT, AND I'M SURE, THAT THE PHASING, COMMUNICATION, THE ANALYSIS, WILL BE AT THE TOP.

EISEN: WELL, YOU WARNED OF A BUMPY RIDE FOR MARKETS WHEN LIFTOFF DOES HAPPEN. WHAT IS YOUR BIGGEST CONCERN? IS IT THE IMPACT INTERNATIONALLY?

LAGARDE: I THINK I'M CONCERNED ABOUT TWO CRITICAL ISSUES. ONE IS VERY LOW, IF NOT NEGATIVE INTEREST RATES, FOR LONGER PERIOD OF TIME THAN WE THINK IS NECESSARY TO KICKSTART THE GROWTH. BECAUSE THAT COULD REALLY CREATE THE COMPOST FOR SOME POTENTIAL, YOU KNOW, ASSET CLASS OVERVALUATION RISKS. AND THE SECOND ONE IS, THE SITUATION OF PARTICULARLY THE CORPORATE AND THE EMERGING MARKETS MARKET ECONOMIES, THAT HAVE SIGNIFICANTLY BORROWED IN DOLLAR DENOMINATED LOANS AND COULD FIND THEMSELVES IN A TOUGH SPOT IF THE DOLLAR CONTINUES TO BE HIGH, THE INTERESTS BECOME – BEGIN TO RISE.

EISEN: YEP.

LAGARDE: AND IF THEY ARE TRAPPED BY, YOU KNOW, LOW COMMODITY PRICES AND HAVE NOT HEDGED, THAT'S AN AREA FOR POTENTIAL RISK.

EISEN: DOLLAR HERE GETTING TOO STRONG FOR COMFORT?

LAGARDE: I WOULDN'T SAY TOO STRONG BECAUSE IT'S SOMETHING THAT, YOU KNOW, IS GOING TO ADJUST DEPENDING ON THE STRENGTH OF THE ECONOMY AND WHAT IT TELLS US AT THE MOMENT, IS THAT THE U.S. ECONOMY IS DOING EXTREMELY WELL OR BETTER THAN MANY OTHERS.

EISEN: BUT I'S ALSO THE MONETARY – I MEAN, YOU HAVE THE TWO MOST MAJOR CENTRAL BANKS GOING IN OPPOSITE DIRECTIONS. THAT'S UNPRECEDENTED. AND THAT CREATES A BIG GAP AND ALL SORTS OF VOLATILITY ON FOREIGN EXCHANGE. THAT HAS TO BE SOMEWHAT OF A CONCERN.

LAGARDE: WELL, YOU KNOW, QE BY THE FED WAS ALSO UNPRECEDENTED. LET'S FACE IT, THE MONETARY POLICY AUTHORITIES ARE IN UNCHARTERED TERRITORIES AND THEY'RE GOING TO HAVE TO TALK TO EACH OTHER AS MUCH AS THEY CAN IN ORDER TO ANTICIPATE POTENTIALS.

EISEN: I WANT TO ASK YOU ABOUT, SINCE WE'RE ON THE MARKETS, THE STOCK MARKET. NOT SUCH A MODERATE AND UNEVEN RECOVERY FOR STOCK PRICES. EUROPEAN STOCKS ARE AT A RECORD HIGH TODAY. U.S. IS NOT FAR FROM IT. IN JAPAN, A 15-YEAR HIGH. IS THAT DISCONNECT BETWEEN THE GLOBAL ECONOMIC FUNDAMENTALS AND THE MARKETS TROUBLING?

LAGARDE: YOU KNOW, IT SAYS THAT THERE IS A SHIFT. THERE IS VERY LOW COST FINANCING. THE BOND MARKET IS CHANGING ENORMOUSLY. AND IF THE RISE IN EQUITY PRICES AND CAPITAL MARKETS IS INDICATIVE OF ECONOMIES THAT ARE BEGINNING TO RISE AND DO BETTER, THAT IS GREAT. IF IT MEANS THAT THIS AVAILABLE FINANCING IS DIRECTED AT BUYBACK SCHEMES, FOR INSTANCE, THAT'S MORE WORRYING.

EISEN: YOU'RE AGAINST THE CORPORATE BUYBACKS?

LAGARDE: I'M NOT AGAINST IT. I THINK THAT FINANCING SHOULD BE USED TO FUEL THE ECONOMY, TO CREATE VALUE, AND TO STIMULATE DEMAND THAN JOB CREATION.

EISEN: BUT YOU'RE NOT GOING TO CALL IT A BUBBLE – WHAT'S GOING ON IN FINANCIAL ASSETS?

LAGARDE: I THINK THAT THE MONETARY AUTHORITIES, SUPERVISORS OF VARIOUS MARKETS HAVE TO BE VERY ATTENTIVE AND THEY HAVE TO BE VERY GRANULAR TO SEE WHETHER THERE IS BUBBLE DEVELOPMENTS. AND IF SO, TAKE THE MACRO AND MICRO PRUDENTIAL MEASURES THAT WILL BE NECESSARY TO ADDRESS THEM.

EISEN: SPEAKING OF BUBBLES I'M CURIOUS, WHAT DO YOU THINK WHEN YOU HEAR THAT A COMPANY LIKE UBER, PRIVATE MARKETS, GETS A $41 BILLION VALUATION OR PINTEREST AN $11 BILLION VALUATION OR PALANTIR, WHICH MANY PEOPLE HAVE NEVER HEARD OF, FOR $15 BILLION.

LAGARDE: I SAY THAT, YOU KNOW, THOSE ARE CLEARLY NEW MARKETS, NEW APPROACH TO DEMAND AND IF IT CAN HELP UNLOCKING SOME OF THOSE VERY PROTECTED TURFS AND AREAS OF THE MARKET, HEY.

EISEN: YOU DON'T THINK THAT SOUNDS A LITTLE BUBBLICIOUS?

LAGARDE: YOU KNOW, I'VE LIVED THROUGH THE INTERNET BUBBLE SOME, YOU KNOW, NOW 20 YEARS AGO, AND I'M NOT SURE THAT WE ARE IN THE SAME MOMENT.

EISEN: YOU MENTIONED THE BOND MARKET AND YOU DID RAISE THIS IN THE SPEECH, THIS IDEA OF LIQUIDITITY CONCERNS FROM SOME OF THE REGULATION. JAMIE DIMON ACTUALLY WARNED ABOUT THIS IN A SHAREHOLDER LETTER YESTERDAY THAT IN THE EVENT OF ANOTHER CRISIS, IT COULD BE VERY TROUBLING BECAUSE OF LACK OF LIQUIDITY. HE MENTIONED THAT ONCE IN 3 BILLION YEAR FLASH CRASH IN BONDS ON OCTOBER 15th. WHERE DO YOU SEE THIS?

LAGARDE: WELL, WE WARNED ABOUT THAT LIQUIDITY POTENTIAL RISK ABOUT SIX MONTHS AGO NOW AND I'M VERY PLEASED THAT IT'S BECOMING SORT OF MAIN STREAM DISCUSSION BECAUSE IT IS TRUE THAT, YOU KNOW, IN THE CASE OF SHORTAGE OF LIQUIDITY IF EVERYBODY WANTS TO EXIT AT THE SAME TIME IT'S GOING TO BE DIFFICULT. THAT'S AGAIN AN AREA WHERE AUTHORITIES HAVE TO BE EXTREMELY MINDFUL OF ANY SUCH RISK.

EISEN: DID THE REGULATORS GO OVERBOARD?

LAGARDE: I WOULDN'T, YOU KNOW, DRAW THAT CONCLUSION. I THINK THE REGULATORY CHANGES WERE CALLED FOR, HAVE TO BE IMPLEMENTED, THEY HAVE TO BE IMPLEMENTED IN A REASONABLE, CONSISTENT FASHION, BECAUSE WE DON'T WANT TO HAVE THIS POTENTIAL DISCREPANCIES BETWEEN ONE PART OF THE WORLD AND THE OTHER OR AMONGST COUNTRIES IN A PARTICULAR CURRENCY ZONE, AND THAT'S WHAT IS NEEDED. WE DON'T WANT TO HAVE ANOTHER FINANCIAL CRISIS.

EISEN: RIGHT. YOU DID MENTION THE GENDER GAP AND I KNOW YOU'VE BEEN TALKING ABOUT THIS FOR A LONG TIME. CURIOUS WHAT YOU THOUGHT OF THE ELLEN PAO CASE AND WHAT WE LEARNED FROM THAT?

LAGARDE: I'M ALWAYS SUPPORTIVE OF ANY MEASURES THAT WILL ACTUALLY HELP REDUCE THE GENDER GAP. I THINK THAT IT APPLIES NOT JUST TO OUR ECONOMIES, TO THE ADVANCED ECONOMIES WORLD, BUT IT'S ALSO SOMETHING THAT IS CRITICALLY IMPORTANT FOR THE LOW INCOME COUNTRIES, AND WE HAVE ACTUALLY MEASURED HOW WE CAN GAIN GROWTH BY REDUCING THE GENDER GAP. IT'S MIND BOGGLING.

EISEN: BUT WHAT ABOUT THIS IDEA OF GENDER DISCRIMINATION? YOU'VE WORKED AT THE TOP OF LAW FIRMS, FINANCE MINISTRY, IMF, MALE DOMINATED INDUSTRIES AND WORLDS.

LAGARDE: I CONFIRM.

EISEN: CAN YOU SYMPATHIZE WITH THOSE CLAIMS?

LAGARDE: I THINK THAT'S – THERE ARE MANY AREAS, MANY MEASURES THAT NEED TO BE TAKEN TO ELIMINATE THOSE DISCRIMINATIONS AND THEY ARE SOMETIMES LEGAL, VERY, VERY OBVIOUS ONES, AND SOMETIMES IT'S IN PEOPLE'S HEAD AND THAT HAS TO CHANGE.

EISEN: ALRIGHT, ALWAYS GREAT TO TALK TO YOU. THANK YOU VERY MUCH. MADAM CHRISTINE LAGARDE, MANAGING DIRECTOR OF THE IMF.

LAGARDE: THANK YOU SO MUCH.

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