The International Monetary Fund wants more transparency in solvency tests made to banks

The International monetary fund (IFM) demanded transparency to the solvency tests will be published tomorrow (friday 23th) to be more transparent. Furthermore, the International Monetary Fund reported “weaknesses” in the banking system in the Eurozone, and pointed that “too many” financial entities depend in “excess” of the “liquidity and other types of governmental aid” .

The International monetary fund is worried about the recovery in Europe

The International Monetary Fund also warned that growth is too weak to afford problems of debt, deficit and unemployment and advised structural reformations, fiscal consolidation and measures to strengthen the banking system.

About the solvency reports twill be published tomorrow, the International Monetary Fund assured that although the market seems to be Ok with the process, the relative doubts on the reliability of tests will provably continue.

The International Monetary Fund called for a major transparency of data used to elaborate the tests and their results , entity by entity if possible. The International Monetary Fund also suggested to uses the solvency tests in smaller entities too.

Luc Everaert, chief of the commission in the Eurozone of the International Monetary Fund, warned that the Euro is near his equilibrium point and pointed that if keeps in the current rank, will help the running consolidation process.

The International Monetary Fund, forecasts that the Eurozone Will Grow by 1% this year and by 1.3% in 2011, but reiterated that is necessary a growth among 1.5% and 3% to change the bad sign of debt.

Mr Everaert also pointed that results of solvency tests of the 91 main European credit entities that will be published tomorrow will be “essential” to restore the trust of markets.

The report mentions that the fiscal crisis “threatens” the recovery and could drive to a persistent unemployment. The International Monetary Fund also pointed that this process will be partially lightened by the depreciation of the Euro.

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