IMF studies range of possible levies on banks

The IMF is due to present a first report on possible bank levies to the G20 in April. A lack of consensus among governments on how to structure and apply taxes may still prevent the G20 from adopting any levy.

But momentum towards a levy appeared to increase last weekend when British Prime Minister Gordon Brown, speaking at a G20 meeting in Scotland, shifted position and explicitly backed consideration of some form of tax.

GROWTH

Blanchard said there was no longer a risk of a global economic catastrophe, but there were many threats to economic recovery.

"It doesn't look like there are major catastrophes at a world level waiting to happen but unemployment is still increasing, growth is still weak, the recovery is going to be tough, the fiscal situation of some countries remains extremely tough."

He added, "Europe is doing better than was forecast. The other question is how sustainable it is...It looks like the next few quarters will be better than we thought just a few months ago."

Official data released on Friday showed the euro zone's economy expanded slightly in the third quarter of this year after five consecutive quarters of contraction.

(Editing by Ron Askew and Andrew Torchia)