forexsq - The International Monetary Fund said European banks may need to sell as much as $4.5 trillion in assets through 2013 if policy makers fall short of pledges to stem the fiscal crisis, up 18 percent from its April estimate.
Failure to implement fiscal tightening or set up a single supervisory system in the timing agreed could force 58 European Union banks from UniCredit SpA (UCG) to Deutsche Bank AG (DBK) to shrink assets, the IMF said. That would hurt credit and crimp growth by 4 percentage points next year in Greece, Cyprus, Ireland, Italy, Portugal and Spain, Europe‚Äôs periphery.
‚ÄúIntensification of the crisis has manifested itself in capital outflows from the periphery to the core at a pace typically associated with currency crises or sudden stops,‚ÄĚ the IMF wrote in its Global Financial Stability Report released today. ‚ÄúRestoring confidence among private investors is paramount for the stabilization of the euro area.‚ÄĚ forex
- 2Ukraine Fighting Surges as Russian-Backed Forces Gain
- 2U.S. Stocks Rise, Poised for Best Month Since February
- 2Draghi dials R for Reform. Line is busy
- 2Euro Set for Seventh Weekly Decline as Region‚Äôs Inflation Slows | Top Forex Brokers
- 2Kiev says Russian troops have entered eastern Ukraine
- 2Pending home sales climb 3.3% in July to reach 11-month high
- 2U.S. Stocks Drop on Ukraine Conflict, Retailer Earnings
- 2Yen Gains on Haven Bid Amid Ukraine Tension; Euro Drops
- 2Dollar General says committed to Family Dollar deal
- 2Crisis deepens as Ukraine says Russian troops back rebel advance
Become Our Fan
apple asia stocks asian stocks australian dollar bernanke boj china dollar draghi ecb economy eur eur/usd euro euro zone europe stocks european central bank european stocks eurozone eurusd facebook fed federal reserve forex forex news forex trading fx gbp/usd gold google greece imf obama oil pound spain stock stock market stocks swiss franc u.s dollar u.s. dollar u.s. economy u.s. stock u.s. stock futures u.s. stocks us dollar usd wall street yen