IMF Official Sees Larger Agreement for Euro Crisis

There is a larger measure of agreement on solving the euro zone debt crisis, as everybody understands the seriousness of the situation, the IMF's first deputy managing director told CNBC on Friday at the Saint Petersburg International Economic Forum.

The International Monetary Fund (IMF) headquarters building in Washington, D.C.
Yuri Gripas | Getty Images
The International Monetary Fund (IMF) headquarters building in Washington, D.C.

David Lipton spoke a day afterIMF Managing Director Christine Lagarde called on the European Central Bank to cut interest rates. She also said giving aid directly to struggling banks in the euro zone rather than to governments would be a better way of dealing with the crisis.

"Generally speaking it is very important that Europe is supportive of growth. The economies of Europe are struggling to deliver," Lipton said.

"We've also seen doubts about financial institutions, so there's need for confidence in financial institutions and support for lending in the euro zone."

"The link between sovereigns and banks has continued to be a problem," he added. "It's important that the link be broken, that Europe be supportive of sovereigns, of banks, so the link can be broken."

Earlier Friday, Goldman Sachs Asset Management Chairman Jim O'Neill told CNBC that people coming back from the G20 meeting in Mexico at the beginning of the week were optimistic that a solution to the euro debt crisis will be found soon.

"The G20 discussions were very productive," Lipton said. "I think there's a convergence of views, people appreciate the risk. I think everyone understands how acute the risk is that the market stresses are of immediate concern, and that time is of the essence."