Euro area crisis still threats global financial stability: IMF

WASHINGTON, April 18 (Xinhua) -- The euro area debt and banking system crisis still threatens global financial markets despite recent policy relief, the International Monetary Fund said Wednesday.

Recent important policy steps have brought some much-needed relief to euro area financial markets, with bank funding markets being reopened partly, and equity prices recovering, the IMF said in its latest Global Financial Stability Report.

In late 2011, the euro area's banking and government bond markets came under pushed financial stability risks to a new peak of intensity.

"While subsequent policy actions eased euro area bank funding strains and helped stabilize sovereign markets, the risks to global financial stability remain elevated," the report said.