The International Monetary Fund (IMF) has cautioned that fiscal sustainability is going to be a big problem for the coming several years.The warning comes in the backdrop of many countries piling up massive debts in the wake of the global crisis.<br/><br/>To tackle the raging financial turmoil, many developed and developing nations came up with huge stimulus measures to bolster their respective economies.<br/><br/>IMF Managing Director Dominique Strauss-Kahn has said the crisis had created a problem of fiscal sustainability in many countries, that could take decades to fix. Strauss-Kahn was addressing a conference in Tel Aviv. He said, it is important at this stage for countries to announce a credible strategy to bring their debt back to more sustainable levels.<br/><br/>Even though the world economy is recovering faster than expected, the IMF chief pointed out that withdrawing stimulus measures early, then the risks for the economy would be much bigger.
News On AIR | February 1, 2010 5:52 PM
IMF warns against withdrawing stimulus measures which may create fisscal sustainability problems