Forecast higher growth in advanced economies this year but kept outlook unchanged for developing world.
Report says large parts of world financial system at risk.
Lagarde calls resolving Washington standoff as soon as possbile "‘mission-critical.”
Brings total disbursements so far from $1.3 billion IMF program to $226 million.
Palestinians may struggle to keep financing their budgets over time, IMF mission chief warned.
Three year economic assistance loan requires government to enact reforms to boost growth, tax collection.
Calls for IMF-supported bailouts for southern euro-zone countries to be more economically sustainable.
Managing Director Christine Lagarde also urged more austerity from the embattled government in Athens.
Repeats IMF's position that sequestration has cut U.S. economic growth.
