A senior International Monetary Fund official is warning that Europe could face a credit collapse if it doesn’t take additional actions to address the current fiscal crisis.

IMF First Deputy Managing Director David Lipton said in a financial forum in Hong Kong Monday that Europe could slip into a downward spiral of collapsing confidence without bold action.

He added the euro zone crisis will not evolve into another catastrophe if Europe takes bold actions and receives assistance from countries around the world.

Lipton urged nation's that have succeeded in reining in inflation to end their monetary austerity policies and promote global economic growth.

He stressed that Asia's role within the IMF should become bigger than the past, given its rise as an economic powerhouse.