IMF warns of debt crisis of rich nations

IMF warns of debt crisis of rich nations

Friday 12 October 2012

BAGHDAD – babysit – Director-General warned of the International Monetary Fund Christine Lagarde Friday that public debt accumulated rich countries are close to the levels recorded in the “wartime”, arguing that the “hurdle” would only be overcome behavior “difficult road”.
Said Lagarde spokeswoman in Tokyo during a meeting of representatives of the States the 188 members of the Fund, “The biggest obstacle (to growth) will present undoubtedly inheritance tremendous successor public debt has reached now average 110% (of GDP) in developed countries, a level almost equal wartime levels. ”

According to IMF forecasts released this week, the public debt in developed countries will exceed 110% this year and 113% in 2013.

Lagarde said it would be “difficult to unreasonably” to address this debt growth baht calling to find “the appropriate pace” to reduce the deficit.

“He is a difficult and long road probably no room to be shortened.”

And once again called for the reform of the financial system, which it called “not a safer yet” what it was when the bankruptcy of Lehman Brothers U.S. in 2008 caused the outbreak of the financial crisis.

She said the “ongoing abuses and scandals reveal that culture (financial) actually has not changed.”

She explained that the system “is still extremely complex and activities are still concentrated too much in major institutions,” she said, adding that the specter of banks “larger than that allows Bavlassha” still “hangs” on the sector. Q, Q