IMF warns world economy risks chronic new phase of financial crisis

Report finds financial system is only part-fixed and further action is needed to tackle underlying threats to stability

 

The International Monetary Fund has warned that new risks to global financial stability are already emerging before the problems left by the deepest slump since the 1930s have been sorted out.

In its half-yearly healthcheck on the financial system, the Fund said failure to deal with old and new risks risked propelling the five-year old crisis into a fresh chronic phase.

José Viñals, the IMF's financial counsellor) said the improvement in financial markets seen over the past six months would not be sustained unless policy makers addressed "key underlying vulnerabilities".

READ MORE:  http://www.guardian.co.uk/business/2013/apr/17/imf-world-economy-risk-new-financial-crisis