A former IMF First Deputy Managing Director, John Lipsky, has said that the world’s financial system is not yet performing adequately, especially in the Euro Zone.

He said this on the sidelines of the annual World Economic Forum (WEF) in Davos on Wednesday.

Lipsky, a Senior Fellow, Foreign Policy Institute at Johns Hopkins School of Advanced International Studies, told Reuters Television, “Six years after the beginning of the Greek financial crisis, the world’s financial system is not yet back in the shape it needs to be in.”

According to Lipsky, “the recapitalisation and cleaning the bank balance sheet remains incomplete and more action is needed.

“That’s one of the key issues or one of the key tasks in the Euro Zone for 2014,” Lipsky added.

He explained “There is no clear recipe or easy answer to say, how do we get back to the kind of performance that we think that is both desirable and achievable, especially in the largest economies.

“This, I’m sure will be discussed extensively here”, he added.