Europe News Desk!! International Monetary Fund (IMF) chief Kristalina Georgieva has warned that financial stability in the global economy is at risk due to turmoil in the banking sector. Georgieva said rising interest rates have put pressure on debt, causing stress in major economies, including lenders. He said that this year the world economy will expand by only 3 percent. Rising debt costs, the war in Ukraine and the COVID pandemic have ravaged the economy. The IMF chief said it was clear that the risks to financial stability have increased further following the collapse of Silicon Valley Bank and the purchase of Credit Suisse by UBS. Investors will keep an eye on Deutsche Bank shares when European markets reopen on Monday after a selloff in banking shares on Friday. The European Central Bank (ECB) said the recent turmoil in banking will have a real impact on trade and growth. In an interview with the Business Post, ECB Vice President Luis de Guindos said the EU central bank fears that problems in the banking sector will weigh on growth and push up inflation.
–IANS
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