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Total cost of world financial crisis at $11.9 tn: IMF

Last Updated: Sunday, August 9, 2009 - 17:28

London: The world has spent a staggering 11.9
trillion dollars to wriggle out of the financial crisis, the
sum which is enough to finance a 1,779 pound handout for every
person living on the planet, a newspaper said quoting the
International Monetary Fund.

"The cost of mopping up after the world financial crisis
has come to USD 11.9 trillion (7.12 trillion pound) -- enough
to finance a 1,779 pound handout for every man, woman and
child on the planet," the newspaper said in a report.

Citing IMF calculations, the news report said, "Most of
the cash has been handed over by developed countries, for whom
the bill has been USD 10.2 trillion, while developing
countries have spent only USD 1.7 trillion -- the majority of
which is in central bank liquidity support for their
stuttering financial sectors.

The whopping total cost of crisis is equivalent to around
a fifth of the entire globe`s annual economic output and
includes capital injections pumped into banks in order to
prevent them from collapse, the cost of soaking up so-called
toxic assets, guarantees over debt and liquidity support from
central banks.

"Although much of the total may never be called on, the
potential outlay still dwarfs any previous repair bill for the
global economy," The Telegraph said.

Bureau Report

First Published: Sunday, August 9, 2009 - 17:28
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