Finance officials see rising risks to economic recovery

WASHINGTON - World finance officials said Saturday that they saw a number of threats for a global economy still clawing back from the deepest recession in seven decades, and that the Greek debt default posed the most immediate risk.

After the officials wrapped up three days of talks, the International Monetary Fund's policy committee set a goal of working toward a "more robust, balanced, and job-rich global economy" while acknowledging growing obstacles to that objective.

The Greek finance minister, Yanis Varoufakis, held a series of talks with finance officials on the sidelines of the IMF and World Bank meetings, trying to settle his country's latest crisis.

Mario Draghi, head of the European Central Bank, said it was "urgent" to resolve the dispute between Greece and its creditors.

He said that a default would send the global economy into "uncharted waters" and that the extent of the possible damage was hard to estimate. He told reporters he didn't want to contemplate the chance of default.

Last week, IMF managing director Christine Lagarde rejected suggestions her agency might postpone repayment deadlines for Greece.

But on Saturday, she cited constructive talks with Varoufakis and said the goal was to stabilize Greece's finances and assure an economic recovery.

Greece is in negotiations with the IMF and European authorities to receive the final $7.8 billion installment of its financial bailout. Creditors demand Greece produce a credible overhaul before they release the money.

The country has relied on international loans since 2010. Without more bailout money, Greece could miss two debt payments due the IMF in May and run out of cash to pay government salaries and pensions.

Fears that Greece could default and abandon the euro sent shock waves through global markets Friday. After being down nearly 360 points, the Dow Jones industrial average recovered a bit to finish down 279.47, a drop of 1.5 percent.

U.S. Treasury Secretary Jacob Lew said a Greek default would create immediate hardship for Greece and damage the world economy.

In a speech Saturday to the IMF panel, Lew also warned South Korea, Germany, China, and Japan to do more to increase consumer demand in their own countries instead of relying on exports for growth.