International Monetary Fund Director Kristalina Georgieva said the International Monetary Fund is assessing the potential impact on the global economic outlook.
International Monetary Fund (IMF) Director Kristalina Georgieva warned on Sunday of increased risks to global financial stability and cautioned in the face of the potential impact of a banking crisis on the economy. I called on you to continue.
Georgieva made these statements in Beijing during a speech offered on the occasion of her participation in the China Development Forum.
“In some advanced economies, at a time of high debt levels, a rapid transition from a long period of low interest rates to the much higher rates needed to combat inflation will inevitably create stress and vulnerability. , recent events in the banking sector show that in some developed countries,” I understand.
Georgieva thus referred to the banking crisis that began with the collapse of the US bank Silicon Valley Bank.
In his opinion, “authorities have acted decisively in response to risks to financial stability and central banks in advanced economies have improved their liquidity offerings in US dollars.”
These actions “reduced market tensions to some extent, but high uncertainties underscore the need for vigilance,” he added.
IMF warns of growing risks to financial stability
Giorgieva indicated that the IMF is assessing the potential impact on the economic outlook and global financial stability.
“We are paying close attention to the most vulnerable countries, especially low-income countries with high levels of debt, and will provide a detailed assessment in our next Global Economic Outlook and Global Financial Stability Report.” the director said.
On March 9th, the bankruptcy of US bank Silicon Valley Bank was known, joining bankruptcies carried out by signatory banks a few days earlier, causing strong turmoil in global stock markets.
A few days later, a new crisis hit Swiss bank Credit Suisse, leading to its takeover by UBS with the backing of authorities, and the mistrust created by Germany’s Deutsche Bank last week created new turmoil in the market. . , after announcing the prematurity redemption of the subordinated bonds.
Source: Biobiochile
