According to a recent report issued by the IMF, the primary threat which could jeopardize the Eurozone’s fragile recovery and worsen the recession is the deleveraging of bank balance sheets over the coming 18 months. Eurozone area banks have an estimated EUR2.6 trillion on their balance sheets that will need to be eliminated, and it is the IMF’s fear that the scale and synchronization of the deleveraging process will trigger system-wide instability that could jeopardize growth prospects. Read more
