Credit crunch in Europe would deepen recession, IMF says

04/18/2012 | Guardian (London), The

The International Monetary Fund warned that if European banks simultaneously take strong measures to fix their balance sheets, a major credit crunch might occur. The IMF expects 58 of the biggest EU banks to shed $2.6 billion in assets by the end of next year, nearly 7% of their total. The IMF predicted that the euro-zone economy will shrink 0.3% this year, then expand 0.9% next year, but a credit crunch would reduce gross domestic product 1.4% after two years.

View Full Article in:

Guardian (London), The

Published in Briefs: