Thursday May 15, 12:38 PM
IMF chief says worst of financial crisis is over UPDATE
(updates with quote and background)
BRUSSELS (Thomson Financial) - The worst of the financial sector crisis is over although the impact on the broader economy will likely drag on in coming months, IMF managing director Dominique Strauss-Kahn
said on Thursday.
'There are good reasons to believe that the largest part of disclosure in financial institutions has been done, especially in the United States ... so that the worst news is behind us,' he told a panel at the European Parliament.
'The main problem is the linkages between the financial crisis and the real economy and this is not behind us,' he added, estimating the impact of the financial turmoil to weigh on economic activity for another 'several quarters'.
Economic growth has slowed in most major economies recently in the wake of a slump in the US housing market, which has triggered extreme financial market volatility and reluctance among banks to make all but the safest loans.
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