IMF 'firewall' for Europe touted at Davos

DAVOS, Switzerland, Jan. 29 (UPI) -- Economic officials meeting in Switzerland this weekend voiced support for a financial "firewall" to stave off the sovereign debt crisis.

There were dire warnings at the World Economic Forum in Davos that the upheaval in the eurozone posed a devastating threat to the world economy and major commitments would be required to snuff it out.

"I have never been as scared as now about the world," said Donald Tsang, chief executive of Hong Kong. "We do not know how deep this hole would be when the whole thing implodes on us."

The New York Times said Sunday Europe and the rest of the industrialized world was looking to the International Monetary Fund as the source of funding for the firewall, which would stabilize the European economies.

The IMF's primary mission is to provide aid from the industrialized world to developing nations. The Times said critics have objected to using the IMF to assist industrialized nations in Europe; however, proponents say the firewall would be more a confidence builder than direct aid.

"If it is big enough, it will not get used," said IMF Managing Director Christine Lagarde.