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Posts Tagged ‘IMF’

Amidst the attempt of the United States to prevent a full scale crash in the financial stadium, the International Monetary Fund (IMF) warns of a possible meltdown in world finance.

IMF backed up the plan of the Group of Seven (G-7), the world’s industrialized nations, to try to help stabilize the stock market and take immediate action.

According to news, the government in the United Kingdom would launch its bank rescue on Monday on its four largest banks namely Lloyds, bank of Scotland, Barclays and HBOS with $60.5 billion of support.

In Australia, all deposits on banks, credit unions and building society will be guaranteed by the Australian government for three years.

In Germany, a rescue plan of $549 billion is being prepared including injection of equity capital.

France on its part promised to hold a meeting with European heads to help prevent the market in creating a mass panic and to create a better plan in countering the eminent financial crisis.

IMF chief Dominique Strauss-Kahn warns of a possible meltdown, but then expressed hopes that governments’ actions can help persuade banks in resuming its lending services to stop the spreading problem.

However, financial ministers from the G-7, the United States, Britain, Germany, France, Japan, Canada and Italy could not agree on a concrete measure to help alleviate the problem and unfreeze the credit market and ensures the bank can really raise enough money.

The G-7 also held a meeting with the financial heads of G-20 or the group of emerging nations on Saturday October 11 to effectively communicate what will be the action plan of one country so it does not affect other countries in its region as a whole.