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IMF Sees Global Risks Persisting Despite Financial Rally
In its latest Global Financial Stability Report, the International Monetary Fund said despite dramatic financial improvements in recent months, there is a persistent and growing wedge in Europe between financial 'haves’ and 'have nots.’ Because banks in Europe are broken, affordable credit is not getting through to the parts of the economy that need it, particularly to small and medium-sized enterprises. Also, large amounts of debt are weighing down many corporations in periphery countries, which they built up during the pre-crisis boom years.
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