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IMF estimated costs of financial crisis at almost 12,000 billion dollars

This entry was posted on Monday, August 10th, 2009 at 11:19 and is filed under Currency, Finance, Investment, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

The cost of the global financial crisis had reached 11.9 trillion U.S. dollars, an amount equivalent to almost a fifth of annual global economic output, according to calculations of the International Monetary Fund (IMF), quoted by The Telegraph.

The money was used for resolving the financial sector, severely affected by crisis.

The money could cover the payment of a check for three thousand dollars for each citizen of the planet. Amounts spent have assumed capital infusions made to rescue banks from collapse, for cleaning toxic assets from the system, securing debt and central bank support.

Great Britain has spent the most money to support the financial sector.
International Monetary Fund’s estimate comes from two years after the start of the economic crisis and shows that, for the most part, the costs were borne by the developed countries.

They claimed total costs of 10.2 trillion dollars, while the Emerging states have contributed only with 1.7 trillion. Calculations made by the IMF stress the growth of these costs and show that money was used for recovery of the financial sector, severely affected by the crisis.

The report shows that Britain has spent the greater part of the amount on measures to support the financial sector. Thus, total costs rose to 81.8% of gross domestic product (GDP), 1227 billion pounds.