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Britain could be hardest hit
by financial crisis, says IMF
Edmund Conway and Robert Winnett
London
Telegraph
Friday, April 11, 2008
Britain could be hardest hit by the global credit crisis as banks
in this country have racked up bigger losses than anywhere else
in the world, a new International Monetary Fund analysis shows.
The IMF expects British banks to lose more than £20 billion
- equivalent to three per cent of gross domestic product (GDP)
- from the international meltdown in sub-prime mortgages.
American banks, which had been thought to be bearing the brunt
of the credit crisis, will lose £72 billion - equivalent
to only 1.4 per cent of US GDP. By contrast Japan's losses are
£5 billion and China's £1.5 billion.
(Article continues below)
European countries using the single currency have lost £61.5
billion - 1.7 per cent of GDP.
Analysts and opposition parties said that the IMF figures undermined
Alistair Darling's insistence that Britain remains well placed
to withstand the financial crisis.
Borrowers face even higher charges from the banks, which are
expected to try to recoup their losses by charging more for mortgages,
loans and credit cards.
This means families are facing increased costs in the coming
months even if, as expected, the Bank of England cuts interest
rates today.
Full
article here.
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INFOWARS:
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