IMF warns of fresh financial crisis
by Larry Elliott Economics editor from Economics | The Guardian on (#1ABNV)
Urgent action to sort out eurozone banks called for in financial stability report warning market turmoil may recur
The International Monetary Fund has highlighted risks of a new financial crisis, warning that global output could be cut by 4% over the next five years by a repeat of the market mayhem witnessed during the 2008-09 recession.
The IMF used its half-yearly global financial stability report to call for urgent action on the problems of banks in the eurozone, a third of which it said faced "significant challenges" to be sustainably profitable.
Related: IMF homes on the eurozone's weakest link: Italy
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