Sovereign Debt Tops Imf Worries

Spiralling sovereign debt in Europe, the US, and Japan has emerged as the top threat to the world economy and risks setting off a fresh financial storm, the International Monetary Fund has warned. "The crisis has led to a deteriorating trajectory for debt burdens and sharply higher sovereign risk. Vulnerabilities now increasingly emanate from concerns over the sustainability of governments' balance sheets," said the Fund's Global Financial Stability Report.

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