Fed:Global toxic assets could reach $4 trillion:IMF

AAP General News (Australia)
04-22-2009
Fed:Global toxic assets could reach $4 trillion:IMF

The International Monetary Fund says bank writedowns associated with so-called toxic
assets clogging up the global financial system could eventually reach four trillion dollars($A5.73
trillion).

This is nearly double the amount the IMF predicted in January.

With this in mind .. the IMF warns in its latest Global Financial Stability Report
that costs to taxpayers could be greater if governments don't continue with policies to
restore confidence in the financial system.

The IMF estimates writedowns on US-originated assets since the outbreak of the crisis
will increase to 2.7 trillion dollars from its previous forecast of 2.2 trillion.

This it says is largely as a result of the worsening base-case scenario for economic growth.

AAP RTV cb/kms/af/fdf

KEYWORD: CRISIS IMF (CANBERRA)

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