IMF: Economic insolvencies loom large amid recovering financial conditions

IMF Board concludes 2021 surveillance review

Latest Global Financial Stability Update by the International Monetary Fund (IMF) warned that insolvencies still threaten economic breakthrough despite recovering financial conditions across countries. The following are the key takeaways from the June update: Risk asset prices have rebounded following the precipitous fall early in the year, while benchmark interest rates have declined, leading to an overall easing of financial conditions. Swift and bold actions by central banks aimed at addressing severe market stress have boosted market sentiment, including in emerging markets, where asset purchases have been deployed in a…

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