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Credit crisis could further weaken global economy: IMF

Credit crisis could further weaken global economy: IMF
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First Published: Thu, Apr 10 2008. 03 22 PM IST
Updated: Thu, Apr 10 2008. 03 22 PM IST
New Delhi: The credit crisis that has already toppled Bear Stearns is expected to have additional macroeconomic implications, according to a report by the International Monetary Fund (IMF).
The Global Financial Stability Report indicates financial institutions need to raise capital or cut back assets to cope with continued strains. While most emerging markets have remained unaffected by the crisis, the IMF says benign financial conditions and a low interest rate environment have also meant that risk taking was higher in some of these countries. To try and curb some of these expected affects, the report advises financial institutions to move quickly to raise equity and medium-term funding in order to boost confidence and avoid further undermining of credit channels.
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First Published: Thu, Apr 10 2008. 03 22 PM IST