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IMF boss warns of 'dark clouds'

IMF managing director Christine Lagarde has called for further action to protect the "timid and fragile" global recovery.

Ms Lagarde (right) predicts that there are "several dark clouds on the horizon" amid fears of a fresh eruption of the global financial crisis. She urged developed nations that have yet to pledge money to build a bigger firewall to provide more than ¤300bn in fresh resources.

The former French finance minister expressed concern about five "dark clouds" -- high unemployment, slow growth, over-rapid deleveraging by banks, strains in the eurozone and higher oil prices -- gathering over the global economy.

She said she was looking for further worldwide support.