IMF: Covid-19 pandemic poses serious threat to financial stability
WASHINGTON – The International Monetary Fund (IMF) on Tuesday warned that the Covid-19 pandemic poses a serious threat to the financial stability, as global financial conditions remain much tighter compared to the beginning of the year.
“Following the Covid-19 outbreak, financial conditions tightened at unprecedented speed, exposing some ‘cracks’ in global financial markets,” the IMF said in its newly-released Global Financial Stability Report, noting market volatility spiked, borrowing costs surged and signs of strain emerged in major funding markets.
“These developments have raised the risk that the inability of borrowers to service their debts would put pressure on banks and cause credit markets to freeze up,” the report said, adding the pandemic crisis presents “a very serious threat” to the stability of the global financial system.
Source: iol.co.za