Advanced country sovereign risks could undermine stability: IMF

08:47, April 21, 2010      

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Risks to global financial stability have eased as the economic recovery has gained steam, but concerns about advanced country sovereign risks could undermine gains and prolong the collapse of credit, the International Monetary Fund said Tuesday.

In its latest Global Financial Stability Report, the IMF said that without more fully restoring the health of financial and household balance sheets, a worsening of public debt sustainability could be transmitted back to banking systems or across borders.

The IMF said that governments in advanced countries need to adopt policies that can reduce sovereign risks through well designed fiscal consolidation strategies, clean up the crisis legacy and facilitate a smooth deleveraging process by ensuring that a core of healthy, viable banks is able to support credit.

Source:Xinhua

(Editor:梁军)

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