IMF chief warns global financial stability at risk from banking turmoil

News Snapshot:

The head of the International Monetary Fund has warned that the global economy faces risks to its financial stability because of the turbulence in the banking sector. Kristalina Georgieva, the managing director of the Washington-based lender of last resort, said rising interest rates had put pressure on debts, leading to “stresses” in leading economies, including among lenders. Georgieva said the world economy would expand by just 3% in this year as rising borrowing costs, combined with the war in Ukraine and scarring from the Covid-19 pandemic, would suffocate growth. Adding to a growing chorus of warnings from economic leaders, the...