The IMF said Friday that France's growth outlook "remains fragile" and warned that it would probably miss its target of reducing its public deficit to three percent next year.

"Growth remains sluggish and the near-term outlook is subject to downside risks," it said, saying France's 2013 deficit would not fall below 3.5 percent, while growth will fall from 1.7 percent in 2011 to 0.2 percent in 2012.

The World Bank's arbitration unit has agreed to hear a complaint by Spanish oil firm Repsol over Argentina's expropriation of the company's former energy affiliate YPF.

On its website, the International Center for Settlement of Investment Disputes simply indicated that it had begun the arbitration process on Tuesday and the tribunal was "not yet constituted." Repsol filed its complaint two weeks ago.

Democrat and Republican lawmakers mulled their next move Saturday after leaving Washington for the Christmas holidays without reaching agreement on averting a year-end fiscal crisis that threatens Americans with stiff tax hikes and drastic budget cuts.

On Friday, U.S. President Barack Obama urged lawmakers to pass a scaled-down tax package to avert the so-call fiscal cliff.

The United States on Friday sanctioned four Iranian companies, including one accused of providing weapons to the Syrian regime's crackdown.

The Treasury Department said SAD Import Export Company shipped weapons to the Syrian Armed Forces on behalf of Iran's Defense Industries Organization, which it accused of being used by the government to "assist" the Syrian regime's crackdown.

Qatar has donated $20 million to Tunisia to compensate the families of those killed or wounded in the revolution, local media reported on Friday, as parliament moved closer to adopting a compensation law.

The donations, which will supplement an existing fund, was announced by Tunisian Prime Minister Hamadi Jebali.

The race to find a replacement for Frenchman Pascal Lamy in the World Trade Organization's top post heated up on Friday with the disclosure that Indonesia, Jordan, Kenya and New Zealand had all added candidates to the list.

Indonesia has nominated its ex-trade minister Mari Pangestu, 56, hoping she would bridge the gap between developing and developed countries, presidential spokesman Teuku Faizasyah told AFP.

EU Economy Commissioner Olli Rehn said Friday that France needed more reform rather than more austerity, suggesting a slower fiscal adjustment a day after the government's ability to meet its deficit target was called into question.

"Additional savings measures are not essential," Rehn told the French daily Le Monde, saying a public deficit of 3.0 percent of gross domestic product (GDP) remained the target but adding that once a credible medium-term budget plan backed up by reforms was in place "you can have a slower adjustment".

The White House accused Republicans Thursday of walking away from a deal and mounting futile diversionary votes as hopes plunged of a deal to stave off a damaging year-end fiscal crisis.

If the two sides cannot reach a deficit-cutting agreement before the end of the year, taxes for all Americans will rise and huge automatic spending cuts will be triggered, which could cause a recession and jolt the global economy.

British defence giant BAE Systems announced on Friday a £2.5-billion ($4.1-billion, 3.1-billion-euro) deal to supply military aircraft to Oman.

The group said in a statement it would supply 12 Typhoon fighter aircraft and eight Hawk trainer jets, delivering from 2017.

Standard and Poor's slashed Cyprus' credit rating Thursday by two notches to CCC+, saying the eurozone member was facing increasing financial pressure, with bailout negotiations still unfinished.

"With the government's financing options increasingly limited -- coupled with what we view as the hesitant attitude of Cyprus' eurozone partners toward sharing the cost of a severe banking crisis -- we view the risk of a sovereign debt default as considerable and rising," the ratings agency said.