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October 21, 2015

IMF Warns Of The Risk Of Global Contagion If It Is Not Resolved Soon The Crisis In The Eurozone

Category: General – Tags: , , – admin – 5:41 am

THE IMF warns of major global consequences if problems of the peripheral countries spread to Central European countries. The agency requests that monetary support measures are maintained as long as necessary and to broaden the capital of banks. The Eurogroup meets on Thursday to seek a solution to the Greek crisis. The International Monetary Fund (IMF) has urged Tuesday the euro zone to act urgently to contain the crisis and has warned of major global consequences if the problems of the peripheral countries extend to core countries of the region. An intensification of the crisis in the euro zone, especially if the tension is wide central area, could have major global implications, has warned the Fund, which has published its annual report on the euro area economy this Tuesday. The delays in the resolution of crises could be costly for the euro area and the global economy, has insisted the IMF. To prevent a worsening of the situation, as It now threatens to spread to Italy and Spain, the Fund requested that the adjustment programs in Greece, Portugal and Ireland are fully implemented. That implementation must be accompanied by adequate funding that supports, said the Fund, the viability of debt and solutions based on the private sector to the banking problems.

The Executive Council of the IMF dndio, moreover, after analysing the conclusions of the report, which kept the monetary support measures all the time that would be needed and that expands beyond the requirements of Basel III bank capital. In that sense, Luc Everaert, responsible policies for the eurozone of the IMF, has Senate this Tuesday at press conference phone that most banks should strengthen their capital coffers because that would strengthen confidence in the ability to overcome potholes like this. Improve coordination the senior official also indicated that it is likely that Europe need to increase the resources of the European Fund for financial stability (EFSF, in English) to assist countries with financing problems.

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