Washington DC - For the second day in a row, the International Monetary Fund raised concerns of pending financial crisis. Ahead of the Spring IMF and World Bank meetings, the IMF released the Global Financial Stability Report, warning of "vulnerabilities" in corporate debt, house values and sovereign (country) debt.
"We are seeing some of same conditions that created the 2008 financial crisis and the IMF worries that we are not doing enough to prevent the next financial crisis," stated Jubilee USA Executive Director Eric LeCompte who monitors IMF reports. "When we review the IMF's analysis, they are looking directly at causes of the 2008 financial crisis, including house values, corporate and country debt and risky financial behavior."
On Tuesday, the IMF released the biannual World Economic Outlook Report noting a global growth slowdown and raising concerns about unsustainable debt, trade tensions and the impact of natural disasters on the financial system. The IMF expressed heightened concerns of looming debt crises and possible financial crisis.
On the heels of the IMF report releases, the IMF and development groups organized a high-level event at the meetings,"Tackling the Next Wave of Sovereign Debt Crises." On Wednesday, world leaders, finance ministers, business leaders, journalists and development groups attend the event at IMF Headquarters.
"In order to prevent financial crisis, we need stronger international and national policies to deal with debt problems, stop risky financial behavior and promote tax and transparency policies that can raise revenue," said LeCompte, one of the organizers of the debt event.
The speakers at the high-level forum include Benin's Finance Minister Romuald Wadagni, the IMF's David Lipton, The Guardian's Larry Elliot, the director of AFRODAD - Fanwell Bokosi and legal experts Lee Buccheit and Odette Lienau. Jubilee USA Network, AFRODAD, Oxfam, Latindadd, Eurodad, Jubilee Debt Campaign (UK), Jubilee Germany and the IMF sponsored the event. In addition to the high-level debt panel, Jubilee USA is also organizing events this week on Somalia, transparency policies and country debt case studies.
Read the April 2019 Global Financial Sustainability Report
Read Jubilee USA release on the April 2019 World Economic Outlook
Read more about the IMF Main Event "Tackling the Next Wave of Sovereign Debt Crises"
Read about Jubilee USA's Panel "Dealing with Sovereign Debt Distress: Case Studies, Causes and Solutions"
Read about Jubilee USA's upcoming "High-Level Forum on Debt Cancellation for Somalia"