Risk of global financial crash has increased, warns IMF

Threat of instability and recession in emerging economies, and legacy of debt and disharmony in eurozone among 'triad of risks' outlined in stability report

The risk of a global financial crash has increased because a slowdown in China and decline in world trade are undermining the stability of highly indebted emerging economies, according to the International Monetary Fund (IMF).

The Washington-based lender of last resort said the scale of borrowing by emerging market countries, whose debts are vulnerable to rising interest rates in the US, mean policymakers need to act quickly to shore up the financial system.

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