Thursday, September 22, 2011

IMF: Financial risks rising in US and Europe


''WASHINGTON – The International Monetary Fund says the global financial system faces more challenges than at any point since the 2008 financial crisis.
Europe's debt crisis is spreading to its banks, which hold government debt and may be forced to pull back on lending to conserve cash, the lending organization said Wednesday.
The U.S. economy is being restrained by its depressed housing market. Many homeowners owe more on their mortgages than their homes are worth. That has limited their ability to spend and is holding back growth.
The IMF urged European banks to raise more capital to shore up their finances. If necessary, governments should provide it. And it said the U.S. government should help homeowners reduce their mortgage debt.
"Risks are elevated, and time is running out to tackle vulnerabilities that threaten the global financial system and the ongoing economic recovery," the IMF said in its semi-annual Global Financial Stability report..''


Executive Summery IMF report..
Full Text..

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