The International Monetary Fund (IMF) releases its biannual report on global economic stability and presents new indicators it says can help predict financial crisis.
"The IMF is trying to put better tools in place to predict financial crisis and impediments to economic growth," noted Eric LeCompte who tracks IMF reports as the Executive Director of the religious development coalition Jubilee USA. "While the IMF is looking at better ways to predict crisis, we still have not put in place the actual tools to prevent financial crisis."
On Thursday morning, LeCompte is moderating a special panel at The Fund ahead of the annual meetings on financial crisis prevention. Dr. Steven Schwarcz will present new policy instruments that can resolve debt and financial crisis. Tirivangani Mutazu of African Forum and Network on Debt and Development (AFRODAD) will explain why prevention is necessary as developing countries experience new debt crises.
"The IMF's report warns of increased credit risks and we are more concerned now with unstable debt loads in both poor and wealthy countries," stated LeCompte who serves on United Nation finance expert groups. "I'm concerned that high debt burdens and more risky market behavior will lead to another financial crisis sooner than later."
Yesterday, the IMF released its biannual World Economic Outlook report, which warned about climate impacts on vulnerable countries.