IMF Warns of Potential Global Financial Risks, Uncertainties

Paris, 07 Rajab 2016/14 April 2016 (MINA) – The International Monetary Fund (IMF) warned of increased global financial stability due to higher economic risks and uncertainty, falling commodity prices, as well as concerns about China’s economy.

In its latest Global Financial Stability Report, IMF experts noted that over the last six months, global markets reacted negatively to those factors, yet it said that since last February it has “significantly improved,” Mi’raj Islamic News Agency (MINA) reported, quoting KUNA.

The report mentions that improvement took place because of “some better news on the economic front, as well as intensified policy actions by the European Central Bank, and a more cautious stance toward raising rates by the US Federal Reserve.”

On China, the report found that it is continuing to navigate a complex transition to a slower and more balanced pace of growth and a more market-based financial system and that Chinese authorities have stepped up efforts to strengthen policy framework to bolster growth and stabilize the exchange rate.

Despite the improvement since February, the report pointed out to “warning signal that more needs to be done to secure global stability.”

Director of Fiscal Affairs Department at the IMF Vitor Gaspar suggested in a press conference in Washington Wednesday four main criteria in which governments can adopt or advance to secure better global financial stability.

First is to improve transparency and accountability, second to identify and quantify fiscal risks, which requires a complete assessment of assets and liabilities of governments, third to actively mitigate and manage risks and fourth is for governments to build buffers to insure continues function and work.   (T/R07/R01)

Mi’raj Islamic News Agency (MINA)