Europe's debt crisis is easing, Christine Lagarde, Managing Director of the International Monetary Fund, tells the CBC’s The Lang & O’Leary Exchange in an exclusive Canadian interview.

In the first of a two-part interview in Mexico City with Amanda Lang during the recent G20 finance ministers’ meeting, Lagarde says the prospect of resolving the problems of high debt burdens is "a little bit more comfortable than it was three months ago and we have not had a derailment that we were fearing at the time."

Lagarde credits policies adopted by eurozone governments, moves by the European Central Bank to avoid tight credit conditions and economic reforms adopted by Italy and Spain.

Financial markets appreciate that "solid work that is being done by European governments" to address the crisis, although Lagarde admits "I don’t feel comfortable yet."

The second part of the interview will air Wednesday on The Lang & O’Leary Exchange on the CBC News Network.