IMF Warned European Countries

IMF Warned European Countries IMF warned European countries. The organization stated that the policies should be maintained. Alfred Kammer, Director of the International Monetary Fund (IMF) Europe Department, evaluated the effects of the coronavirus (Covid-19) pandemic on the economy. Saying that the European economy has paid a heavy price due to the coronavirus (Covid-19) pandemic, Kammer emphasized that the economic effects of the pandemic are enormous, “Risks increase as the second wave intensifies in the epidemic. Policies must remain firmly supportive to continue the recovery in the economy.” Kammer made his statement with a videoconference, and commented on the European economy, where concern was also rising due to the second wave. Pointing out that many people lost their jobs due to the coronavirus (Covid-19) pandemic, Kammer said: “The European economy is paying a heavy price due to Covid-19. The economic impact of the epidemic is enormous. According to our latest estimates, the European economy will shrink by 7 percent in 2020.” Stating that they expect the European economy to grow by 4.7 percent in 2021, Kammer continued as follows: “However, this growth rate is 6.3 percent less than our pre-epidemic growth estimates, indicating a loss of 3 trillion euros in the economy. This loss cannot be recovered in the medium term.” Reminding that the second wave concern prevails in the epidemic, Kammer said, “The risks increase as the second wave intensifies in the epidemic. Policies must remain decisively supportive to continue the recovery in the economy.” Underlining that European banks entered the epidemic with strong capital and liquidity buffers, Alfred Kammer said: “European banks have shown that they are resistant to this indescribable shock. Thanks to their resilience and policies implemented, there was no credit crunch. In the absence of new shocks, the average capital ratio in major European banks will remain well above the minimum capital requirements, but problem loans will increase and policymakers will need to facilitate their efficient disposal.”