Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

Brazil's presidential election seen from the web

Read more

THE OBSERVERS

Tribes revolt in New Caledonia and students rebuild homes in Libya

Read more

#TECH 24

Anonymous vs Islamic State group

Read more

WEB NEWS

Ukraine: activists launch the "Blood Bucket Challenge"

Read more

THE WORLD THIS WEEK

The World this Week - September 19th, 2014

Read more

THE WORLD THIS WEEK

The World this Week - September 19th, 2014 (part 2)

Read more

IN THE PAPERS

Coalition split on 'English votes for English laws'

Read more

IN THE PAPERS

French papers react to Sarkozy's TV return

Read more

WEB NEWS

Ivory Coast launches the "Soap Bucket Challenge"

Read more

Business

IMF head says recovery plans 'don't go far enough'

Latest update : 2009-02-17

IMF head Dominique Strauss-Kahn warned on Tuesday that without regulating bank balance sheets and more coordination between governments, the global financial crisis would continue. Current recovery plans "don't go far enough," he said.

AFP - The global financial system is still far from sound and the toxic debt blighting bank balance sheets is undermining government recovery efforts, the head of the IMF warned on Tuesday.

"The whole world's financial system is not yet healthy and thus recovery effects are not sufficiently strong," Dominique Strauss-Kahn, managing director of the International Monetary Fund, told France Inter radio.

"We must finish the job of cleansing bank balance sheets," he insisted, complaining that some banks and national regulators were not working quickly enough to identify and isolate the bad credit which provoked the collapse.

"I'm worried, because the plans that are being put in place are headed in the right direction but don't go far enough," he warned, calling for more coordination between governments struggling with national recovery plans.

Some countries have partly or wholly nationalised banks hit by the credit crisis, others have pushed through rapid mergers and some experts have said so-called "bad banks" must be established to absorb toxic debt.

Many commentators fear, however, that billions of dollars in unpayable loans are still lurking on institutions' books, disguised in a thicket of complex financial instruments and undermining trust in the credit market.

Date created : 2009-02-17

COMMENT(S)