Lagarde: Finance is major obstacle in emerging markets

ANKARA

Access to finance remains a major obstacle to companies in emerging markets, International Monetary Fund Managing Director Christine Lagarde told the G20 on Friday.

"These companies do not have necessarily access to collateral, to finance with banks," Lagarde said in the Turkish capital Ankara. "This makes bank financing challenging."

Alternative sources of finance should be made available so that these companies can grow, Lagarde said.

Labor productivity should also improve in emerging markets with the implementatıon of structural reforms, for this is also a major obstacle to growth, Lagarde added.