The European banking system may have to deleverage to the tune of $4.5T by the end of 2013, says...

|By:, SA News Editor

The European banking system may have to deleverage to the tune of $4.5T by the end of 2013, says the IMF (full report), upping its "weak policies" asset sale scenario from $3.8T at April's forecast. The result would knock 4 percentage points off GDP growth in the periphery next year. "Intensification of the crisis has manifested itself in capital outflows ... at a pace typically associated with currency crises or sudden stops."