IMF Sees Euro Crisis at Critical Stage, Sees Bank Stress

The euro area crisis has reached a “critical stage” and member nations must make a “strong commitment” to the shared currency to stop the plunge in investor confidence, the International Monetary Fund said in a report that recommended issuing common debt as one solution.

“Despite extraordinary policy actions, bank and sovereign markets in many parts of the euro area remain under acute stress, raising questions about the viability of the monetary union itself,” the Washington-based organization said in a report today. “The financial and economic environment continues to deteriorate. Investors are withholding funding from member states most in need, moving capital to safe havens and driving risk premiums to new records.”

READ MORE:   http://www.bloomberg.com/news/2012-06-21/imf-sees-euro-crisis-at-critical-stage-sees-bank-stress.html