In one of these days interviews, IMF Managing Director Christine Lagarde has suggested that the institution it leads kight go out of its biggest tool to intervene into the countries – its money. If in the past IMF used to help much smaller economies from Latin America or Asia, in the latest Eurozone crisis IMF needs to step in for much larger countries. Spain or Italy are no small feat for it – actually the financial aid for this country is (in the worst case scenario) far beyond IMF’s needs. Read more
Tag Archive for IMF
We come back to the IMF handbook published on April 2009, called “Global Financial Stability Report”. This time, we make refference to its reccomendations.
But before this, a new estimation of the IMF on the global write downs of assets. In January 2009 IMF estiamted the bad assets writing off to around $2.7 billion in the US only. In this latest report, the estimations included also other mature market-originated assets, which could increase the total write offs to around $4 billion. In other words, $4 billion of the US economy has been wiped off by the financial crisis (or will be, total until the end of 2010). Scary, isn’t it? Read more
The International Monetary Fund issued today a statement by which it encouraged the Eastern European countries to adopt Euro as thei currency, in order to avoid the further effects of the financial crisis. An article published in Financial Times today mentioned that:
“For countries in the EU, euroisation offers the largest benefits in terms of resolving the foreign currency debt overhang [accumulation], removing uncertainty and restoring confidence. Without euroisation, addressing the foreign debt currency overhang would require massive domestic retrenchment in some countries, against growing political resistance.” Read more
This looks kind of obvious, but when it comes from a markets guru such as the IMF managing Director Dominique Strauss Kahn it can be taken quite seriously. The Director also mentioned that the first recovery will come in the first two quarters of the next year. Read more