September 20, 2011
BRUSSELS: The eurozone’s debt mountain poses a threat to the world economy, the IMF warned on Tuesday, putting pressure on European banks to boost their capital to survive the crisis.
The IMF sounded the alarm in a world economic report that sharply lowered the IMF’s growth projections for the 17-nation eurozone to 1.6 percent in 2011 and 1.1 percent in 2012, down from 2.0 percent and 1.7 percent in a June forecast.
“Should the periphery’s debt crisis continue to propagate to core euro area economies, there could be significant disruption to global financial stability,” the IMF said in its “World Economic Outlook.”
This article was posted: Tuesday, September 20, 2011 at 11:04 am