DUBAI: The International Monetary Fund’s managing director Christine Lagarde did not discount the possibility of another financial crisis and has called on finance ministers and policymakers to act with caution and prepare in case it happens.
“There may, one day, be another crisis,” Lagarde told CNBC, responding to comments earlier made by US Federal Reserve chairwoman Janet Yellen that she did not believe that there will be another financial crisis for at least as long as she lives, because of reforms of the banking system after the 2007-2009 financial crash.
“I plan on having a long life and I hope she (Yellen) does, too, so I wouldn’t absolutely bet on that because there are cycles that we have seen over the past decade and I wouldn’t exclude that,” Lagarde said.
The IMF last week said that global growth should hit 3.5 percent this year and next year, but cautioned that leaders needed to address several financial vulnerabilities.
Lagarde, in a blog post to accompany the IMF report, said that “financial vulnerabilities present an immediate concern.”
“After a long period of favorable financial conditions, including low-interest rates and easier access to credit, corporate leverage in many emerging economies is too high. In Europe, bank balance sheets still need repair following the crisis. In China, a faster-than-projected expansion — if it continues to be fueled by rapid credit and increased spending — would potentially lead to unsustainable public and private debt in the future,” the IMF official said.
She likewise urged participants of the G20 summit in Hamburg to use the current period of growth as an opportunity “to further safeguard the financial sector — by building up capital buffers and strengthening corporate and bank balance sheets; to address the issue of stagnant real wages — which can undermine the recovery and fuel discontent; and to confront the problem of excessive current account imbalances — with both surplus and deficit countries playing their part.”
The G20 leaders’ summit was set up after the 2007-2009 financial crash to provide a broader and more inclusive institution than the G7 group of rich economies.
Its membership represents about 85 percent of global GDP and includes Argentina, Brazil, Canada, China, India, Turkey and several EU countries.
IMF’s Lagarde not ruling out possibility of another financial crisis
IMF’s Lagarde not ruling out possibility of another financial crisis
Al-Ahli lumber to victory against relegation-battling Al-Okhdood to close SPL Matchday 14
- Matthias Jaissle’s side were below their best but ultimately secured all three points
- Ivan Toney scores his ninth of the campaign as Al-Ahli win 1-0
RIYADH: The 14th match-week of the Saudi Pro League concluded in Najran, as Al-Okhdood hosted Al-Ahli at the Prince Hathloul bin Abdulaziz Sports City Stadium.
Al-Ahli edged the relegation-battling hosts 1-0, but victory did not come easily.
With Firas Al-Buraikan continuing to deputise in his makeshift role on the right wing in the absence of Riyad Mahrez, Al-Ahli lacked the creativity that powered them to continental glory last season.
The usual set-piece dominance enjoyed by Al-Ahli, thanks to Merih Demiral and Roger Ibañez, failed to translate into early success.
Former Al-Ittihad defender Naif Assery stood firm at the back, winning two valuable duels in quick succession to deny Wenderson Galeno and Ivan Toney.
It wasn’t until the 34th minute that Al-Ahli mustered a clear chance, when Ibañez sent Toney through on goal with a long ball, only for the Englishman to be flagged offside.
Moments before half time, 20-year-old Matheus Gonçalves appeared to have scored his first league goal in Al-Ahli colors, but the effort was ruled out after Al-Buraikan’s foul on Gökhan Gül in the build-up.
On the other side of half time, Al-Ahli would score, this time through Enzo Millot. The French midfielder coolly made his way past two defenders before finishing in style. Unfortunately, a foul in the build-up would prevent the goal from being counted, as Millot pushed Juan Pedroza on his way to goal.
Their persistence would finally pay off in the 57th minute. Millot’s corner was met by Ibañez, whose header was cleared off the goal line by Mohammed Abo Abd. Ziyad Al-Johani reacted quickest to save the ball on the byline and square it to Ivan Toney, who finished from close range for the only goal of the game.
The win sees Al-Ahli reclaim fourth place with 28 points, three behind Al-Taawoun and Al-Nassr, and seven points adrift of league leaders Al-Hilal.
Elsewhere, Al-Fateh became one of three SPL sides to win every match since the league’s return from the Arab Cup break. Their 1-0 victory against NEOM, sealed by a stunning long-range strike from Naif Masoud, moves them nine points clear of the relegation zone.
Meanwhile, Al-Riyadh climbed out of the relegation zone after salvaging a point against Al-Fayha, with Yoann Barbet scoring a dramatic equalizer in the seventh minute of stoppage time.
Action returns on Monday, headlined by the Capital Derby between Al-Nassr and Al-Hilal, as the SPL resumes midweek.
