The IMF fears an abrupt rise in risk premiums due to the deterioration of public accounts and high inflation.
The high government debt and refinancing needs are pressuring fixed-income markets, while banks face new solvency risks.
The International Monetary Fund (IMF) has warned in its Global Financial Stability Report that a resurgence of inflation or fiscal concerns could lead to a sharp increase in sovereign bond yields and trigger broader market turmoil. This warning comes as government debts are at record levels and in need of refinancing. The deterioration of public finances and rising prices are putting pressure on debt markets.
Written by urgent.news from El Pais Economia's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
