Countries should prepare credible exit strategies from the economic crisis, though there is still a serious risk financial strains could persist or intensify, John Lipsky of the International Monetary Fund said on Thursday.

The risk of a widespread banking crisis has eased substantially, and it is possible that the recovery will be stronger than currently expected, said Lipsky, who is first deputy managing director at the IMF.

(Reporting by James Mackenzie and Anna Willard, editing by Estelle Shirbon)