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IMF head: Financial system not healthy yet

de Radu Rizea
Marţi, 17 februarie 2009, 12:16 English | Business

The global financial system is far from stable, the toxic assets held by banks undermining the governmental efforts to re-launch the economy, said the International Monetary Fund (IMF) head Dominique Strauss-Kahn, quoted by AFP on Tuesday.

The financial system is not healthy yet and the effects of economic recovery are not strong enough, said the IMF official in an interview for the France Inter radio station.

Regulating authorities and banks are not working fast enough in identifying and isolating the problems that led to the banks' collapse, Kahn says.

Due to the economic crisis, some states nationalized the banks that were facing difficulties, others approved mergers, while some experts believe that "bad banks" must be put up, in order to absorb the toxic assets.

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