IMF warns of further recession risks
Banks around the world have still to reveal around half of their likely losses resulting from the financial and economic crisis, the International Monetary Fund said on Wednesday, warning that there was still a “significant” risk of another downward lurch in the global recession.
The Fund described credit risks as remaining “elevated” even though financial conditions have improved significantly since the spring.
It said these risks, alongside weakened banks, were likely to depress the availability of new credit and damp the global economic recovery unless significant additional capital was raised to improve the health and lending capability of banking systems.
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