"The International Monetary Fund (IMF) urged European policymakers Monday to accelerate work to tackle lingering financial system weakness by writing off bad loans at financial institutions. 'To secure recovery and a return to self-sustaining growth, policymakers need to take further decisive action, especially in the financial sector,' the Washington-based lending institution said in its annual assessment of the eurozone economy...." [Kyodo/Factiva]
Deutsche Welle adds that "...the IMF also called for more aggressive efforts to stabilize the ailing banking sector.... The agency said that 'tentative signs of improvement' from the crisis had 'yet to germinate into a recovery' and warned that the banking sector still was exposed to pressure...." [Deutsche Welle/Factiva]
AP writes that "...the IMF called on the European Central Bank to keep considering unconventional options 'including active credit easing' or printing more money to stimulate growth. It said the ECB should also explore any margin for cutting interest rates under 1 percent level 'as soon as possible.' But it warned that reducing rates under the current level, the lowest ever for the euro area, needed to be judged against possible adverse effects on money markets. Lower rates could see investors pull money out of the euro area to get a higher return elsewhere...." [Associated Press/Factiva]
Posts
No comments:
Post a Comment