Financial stability risks remain heightened, says IMF

IMF Managing Director Kristalina Georgieva at the China Development Forum in Beijing, March 26, 2023. REUTERS - JING XU

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After a very volatile weekend, which ended with Deutsche Bank's stock tumble, many questions remain about global financial stability. This worries the International Monetary Fund (IMF) in particular.

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IMF Managing Director Kristalina Georgieva said risks to financial stability "have increased" in recent times. To be sure, advanced economies have taken decisive steps that have to some extent eased market tensions. But "uncertainty is high" and we must "remain vigilant," hammered Sunday, March 26, the Bulgarian economist at the China Development Forum in Beijing.

The IMF, which forecasts slower global growth – below 3% this year – is closely monitoring the situation and its possible effects on the economic outlook and global financial stability. Particular attention should be paid to the most vulnerable countries, especially those with very high debt levels.

This is the case, for example, in Ghana or Argentina. At the end of the week, the Fitch agency lowered Argentina's dollar debt to just above default.

► Read also: Germany: Deutsche Bank worries in turn after a fall on the Frankfurt stock exchange

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  • Finance
  • Economy
  • Economic crisis
  • IMF
  • Kristalina Georgieva