IMF's Zhu Seeks Big & Bold Political Decisions To Reduce Sovereign Risk
Saturday, 10 December 2011 | 00:00
Markets are increasingly concerned over the continuing adverse feedback loop between sovereign risk and financial sector weaknesses, International Monetary Fund Deputy Managing Director Min Zhu said on Friday.
"Big and bold political decisions are needed to reduce sovereign risk," Zhu said at a high-level symposium on the Financial Sector Assessment Program in Shanghai.
"But we also need increased efforts to bolster the financial systems both in advanced and emerging economies."
The world's major advanced economies seem to have entered a vicious cycle of weak economic activity, financial distress, and high public debt and deficits, Zhu said. Meanwhile, emerging economies, though showing stronger fundamentals, are not immune, he added.
Source: RTT News
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