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World Bank's Wolfensohn says US has turned corner

World Bank President James Wolfensohn said on Wednesday he believed the US economy had already turned the corner, but there were still doubts about how strong and lasting the upswing would be.

Wolfensohn added that a recovery in Europe was dependent on the upturn in the world's biggest economy.

"As to the economy, I think there has been a turnaround in the United States but on the depth and duration of it, I, like any other economic observer, am concerned about it," Wolfensohn told a news briefing.

"One thing is true, unless you have a turnaround in the United States, Europe cannot do it on its own."

He also said he was confident Argentina, which is due to repay the World Bank around $800 million in outstanding loans by the middle of May, would meet the payment schedule.

"I am confident that the government will meet its obligations and we will reach an understanding with the Argentine government on refinancing in one form or another," he said.

"I think there is a strong practical reason, because under regulations, if they do not (meet their obligations) we cannot do additional lending and you don't cut off the one source that can help you."

Bank sources said earlier this week that Argentina was due to make the repayment on April 15 but was given a 30 day extension after missing the deadline.

Under World Bank rules new lending will be halted until the arrears have been cleared, the sources said.

Argentina is hoping to borrow billions of dollars in new cash from the international financial community as it attempts to recover from an economic crisis.

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