LUXEMBOURG (AP) — The International Monetary Fund is warning that Europe's debt crisis could have "large global spillovers" if bolder action isn't taken.
The warning comes as the international crisis lender and the eurozone work on clearing the next €12 billion installment of bailout loans to Greece.
The money is needed to keep Greece from defaulting on its debts and spreading financial turmoil by deterring lending by bond markets to other governments.
The IMF says the eurozone needs to expand the powers of its bailout fund and avoid any impression that bailouts mean debt restructuring that would hurt bondholders.
It says in a statement that "failure to undertake decisive action could rapidly spread tensions to the core of the euro area and result in large global spillovers."
