IMF chief urges swift eurozone action on debt plan

International Monetary Fund managing director Christine Lagarde on Tuesday urged the eurozone to "quickly" implement its plan to fight a sovereign debt crisis. The agreement reached last Thursday at a European Union summit in Brussels "shows that European leaders believe in the eurozone, and will do what it takes to secure its destiny," Lagarde said in a speech in New York, according to remarks prepared for delivery. "It has been welcomed by financial markets, as reflected in the stronger euro and lower peripheral bond spreads," she added. "But turbulence could easily resurface. For this reason, it is essential that the summit's commitments should be implemented quickly," she warned. The agreement struck by leaders of the 17-nation eurozone, requiring approval by national legislatures, would expand and strengthen the European Financial Stability Facility's (EFSF) capacity to aid troubled member economies. But on Friday, German Chancellor Angela Merkel signaled a delay in implementing the crisis fund plan, saying the decision will have to wait for lawmakers to return from their holidays. "The new version of the EFSF will be decided after the parliamentary summer break comes to an end," Merkel said in Berlin.