IMF says governments need to shed crisis assets

Having propped up the financial system during the global crisis, governments now need a plan to dispose of the assets they took over and reduce their greatly enlarged risk exposures, according to an IMF study.

The study points out that, contrary to popular opinion, support to the financial sector has so far had only a limited impact on deficits. Other stimulus measures have been far more important. But the interventions mean that governments’ risk exposures have risen sharply.