IMF reports the crisis will not end in a short time?

Yesterday in its latest report IMF made a statement that there will be no end to the bank crisis in the nearest future. The Fund noted that in spite of the wide scope of the policy actions undertaken to address the economy downturn the situation is till far from the adequate level. According to MarketWatch the report was prepared for a meeting of G20 deputies in London last weekend but it was released only five days later. 

"Policy actions to resolve the financial crisis have been broad in scope, but have not yet achieved a decisive breakthrough," the IMF said.

IMF emphasized that more proactive and coordinated policy actions are needed. While countries have already made a "good start" on fiscal measures to stay afloat yet the fund pointed out to that toxic assets must be removed from bank balance sheets.

"If the financial sector is not restored to health, an enduring recovery will not be possible," the IMF said.

As for Washington's debate over how to proceed with bank rescues IMF was neutral. In this regard the fund made a remark that putting the toxic assets in a bad bank or "ring-fencing" the assets with government guarantees were both good ideas.