JAPAN: IMF Financial Stability report warns against false security even as risks in Europe and around the world remain

Record ID: 466661

  • Title: JAPAN: IMF Financial Stability report warns against false security even as risks in Europe and around the world remain
  • Date: 11th October 2012
  • Summary: TOKYO, JAPAN (OCTOBER 10, 2012) (REUTERS) BUILDING WHERE IMF WORLD BANK MEETINGS TO TAKE PLACE SIGN READING: "2012 TOKYO ANNUAL MEETINGS" POLICE POLICE IN FRONT OF IMF WORLD BANK SIGN TOKYO, JAPAN (OCTOBER 10, 2012) (IMF WORLD BANK POOL) IMF OFFICIALS WALKING INTO NEWS CONFERENCE MORE OF OFFICIALS SITTING DOWN JOURNALIST ASKING QUESTION (SOUNDBITE) (English) IMF FINANCIAL COUNSELLOR AND DIRECTOR OF MONETARY AND CAPITAL MARKETS DEPARTMENT, JOSE VINALS SAYING: "One point that I would like to stress is that we cannot, we should not, let current market conditions, which I said at the beginning have improved, give rise to a false sense of security." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (English) IMF FINANCIAL COUNSELLOR AND DIRECTOR OF MONETARY AND CAPITAL MARKETS DEPARTMENT, JOSE VINALS SAYING: "The actions taken by the European central bank in recent weeks have helped remove investors worst fears, but these policies will need to be built upon both at the national and at the Euro area level, as outlined in the complete policy scenarios which is detailed in the report. IMF OFFICIALS (SOUNDBITE) (English) IMF FINANCIAL COUNSELLOR AND DIRECTOR OF MONETARY AND CAPITAL MARKETS DEPARTMENT, JOSE VINALS SAYING: "But let me reiterate the message that I have mentioned, no one is immune from pressures either coming from Europe or from the United States. And as you may have heard, I have also signalled, some important risks associated to the United States economy in terms of the fiscal cliff, debt ceiling, the fiscal challenges and the safe haven flows that have compressed interested rates in the United States alot." NEWS CONFERENCE IN PROGRESS
  • Embargoed: 26th October 2012 13:00
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: International Relations,Economic News,Politics
  • Reuters ID: LVA8WIJVHNEQDY8PIRKI3TXCO3HM
  • Story Text: The International Monetary Fund warned against a false sense of security on Wednesday (October 10) as they said risks had risen in their report issued on the global financial system.
    In its semi-annual check on the world's financial health, the Fund said the euro area's debt crisis was a key threat and the risks to global financial stability had risen in the last six months leaving confidence "very fragile".
    "One point that I would like to stress is that we cannot, we should not, let current market conditions, which I said at the beginning have improved, give rise to a false sense of security," IMF Counsellor and Director of Monetary and Capital markets Jose Vinals said.
    Vinals praised the ECB's actions but the report itself noted risks from the euro zone could also spill into emerging markets, where growth is already slowing with countries in central and eastern Europe the most vulnerable to financial shocks, given their exposure to the euro zone and their own entrenched external debts
    "The actions taken by the European central bank in recent weeks have helped remove investors worst fears, but these policies will need to be built upon both at the national and at the Euro area level, as outlined in the complete policy scenarios which is detailed in the report," Vinals said.
    The report adds to the gloomy backdrop of the IMF's semi-annual meeting to be held in Tokyo later this week. On Tuesday, it said the global economic slowdown was worsening as it cut its growth forecasts for the second time since April and warned U.S. and European policymakers that failure to fix their economic ills would prolong the slump.
    "But let me reiterate the message that I have mentioned, no one is immune from pressures either coming from Europe or from the United States. And as you may have heard, I have also signalled, some important risks associated to the United States economy in terms of the fiscal cliff, debt ceiling, the fiscal challenges and the safe haven flows that have compressed interested rates in the United States alot," Vinals said.
    The IMF World Bank meetings are slated to begin in Tokyo in earnest from Thursday (October 11) and will last until Sunday (October 14).
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2012. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register