The managing director of the International Monetary Fund, Michel Camdessus, has warned that despite a calmer atmosphere in financial markets recently the crisis in the world financial system is not yet over.

However, Mr Camdessus also said there were promising signs that recovery might be around the corner in South Korea, Thailand and even Indonesia -- all recipients of large-scale rescue packages from the IMF.

Speaking in the United States, Mr Camdessus also praised steps taken by Japan in tackling more vigorously the problems in its ailing banking sector.