Tuesday, June 9, 2009

IMF recommends that the ECB ready to deepen the crisis

The International Monetary Fund called on governments of the eurozone to take urgent measures to clear the banking system against the backdrop of rising losses and recommended that the European Central Bank to prepare a "traditional solutions" for the deepening of the crisis, announced June 8, Daily Telegraph.

"To restore confidence, you must fully disclose the potential losses - said the IMF Managing Director Dominique Strauss-Kan (Dominique Strauss-Kahn). - It is not just for damages related to the mortgage crisis, poor quality, but also the loss associated with the economic recession and weak, and assets. There is a lot of information that is disclosed ".
In a further report to the IMF stated that the opportunity to increase the bank capital, yet optimism prevails in the market, should "use without delay." Fund have called for a "comprehensive analysis to evaluate the need for capital." Stress persist, access to bank credit is difficult, the costs of funding remain high. Give substantial losses. The financial sector is unable to perform its primary role, "- stated in the report of the IMF.
According to IMF estimates, euro area banks have yet to attract $ 375 billion of capital. The Foundation called for a Europe-stress tests, a similar inspection device the Ministry of Finance of the United States.


K2Kapital

No comments: