日批在线视频_内射毛片内射国产夫妻_亚洲三级小视频_在线观看亚洲大片短视频_女性向h片资源在线观看_亚洲最大网

Global General

Special

Newsmaker

Asia Pacific

America

Middle East

Europe

Africa

IMF: Euro governments must clean up banks

(Agencies)
Updated: 2009-07-30 23:11

LONDON: The 16 countries that use the euro are unlikely to start growing again until some time in 2010 and must do more to shore up their banks if they want to keep the downturn from lasting longer, the International Monetary Fund said Thursday.

In its latest update for Europe, the IMF's staff forecast that the euro zone will shrink by 4.8 percent this year alone and by 0.3 percent in 2010 despite the anticipated recovery some time in the year.

Related readings:  Euro zone inflation zero in year to May  Euro a good bet, investors advised  IMF welcomes China's substantial fiscal support to economy  IMF raises Asia growth forecast  IMF sees 2010 growth; G8 frets over risks

The director of the IMF's European department, Marek Belka, welcomed the initiatives being trumpeted around Europe to clean up the banks, but stressed that any vulnerabilities exposed must be accompanied by swift action to restore confidence in the financial system.

"The more is done to clean the banks...the more robust the recovery will be," Belka said in a conference call with reporters.

Stress tests are currently being conducted at the national level and in a coordinated fashion for the largest 22 banks in the European Union.

Belka said that it's imperative that any problems identified are dealt with immediately by governments across the continent, whether it involves putting more money into the banks to get their capital positions in shape or backing major restructuring initiatives.

The IMF staff said that a "more proactive approach" to cleaning up the banks would help monetary and fiscal policies to be more effective in supporting demand, reduce the risks of any further financial crisis and the dependence on taxpayer money.

If resolute action is not taken then private investors will remain on the sidelines and Europe would face the prospect of a prolonged spell of slow growth, the staff said.