Washington, Sep 25 (IANS): The International Monetary Fund (IMF) has called on world leaders to implement measures available to deal with the "dangers confronting the global economy", Xinhua reported.

There was "clear common recognition" of the current financial crisis, especially in euro area, said Managing Director Christine Lagarde at a press conference after the International Monetary and Financial Committee (IMFC), the steering body of the 187-member international financial institution.

The world is "half way through" the work that needed to be done to deal with the crisis, Lagarde said.

According to the communique of the IMFC, the world economy is facing four major challenges, including sovereign debt risks, financial system fragility, weakening economic growth and high employment.

Lagarde said that she was "very encouraged" by the dialogue among the ministers who are gathering in Washington DC for the annual meetings of the IMF and it's sibling organisation, the World Bank.

The Group of 20 (G20) economic policy makers met Wednesday at the sideline of the IMF/world annual meetings and urged swift action to prevent the European debt crisis from escalating into a global financial meltdown.

Ministers and central bank governors of the G20 major economies vowed to take "all necessary actions" to stabilise the market and avoid another financial tsunami.