Financial crisis of 2007–08

BELGRADE - The world has never in its history been so indebted, and IMF estimates that the total global debt amounts to 152 trillion dollars or 225 percent of global GDP.

When this is converted, it seems that almost every of 7,5 billion inhabitants of Earth owes around $20,000, writes Vecernji.hr.

The world is swimming in a record $152 trillion in debt, the International Monetary Fund said on Oct. 5, even as the institution encourages some countries to spend more to boost flagging growth if they can afford it. 

ING Group plans to shed 7,000 jobs and invest heavily in its digital platforms to achieve annual savings of 900 million euros ($1 billion) by 2021, the Netherlands' largest financial services company said on Oct. 3.
The layoffs represent slightly less than 12 percent of ING's 52,000 workforce because nearly 1,000 are expected to come at suppliers rather than the company itself.

China's banking sector could be facing an imminent debt crisis, a global central bank watchdog has warned, fuelling fresh fears about a blowout in the world's number two economy that could hit the global economy.

The Bank for International Settlements (BIS), dubbed the central bank of central banks, said a gauge of Chinese debt had hit a record high in the first quarter of the year.

Any Greek banks not reaching their targets regarding the reduction of nonperforming loans face penalties such as automatic sales of bad loan packages, management-level changes and additional capital demands, or share capital increases, according to the Single Supervisory Mechanism of the European Central Bank.

By Giles Broom

A Greek exit from the euro area would only bring a temporary halt to the rally in European equities and high-yielding credit, GAM Holding AG Chief Executive Officer Alexander Friedman said.

The Central Bank warned in its annual report issued on Monday that high interest rates are causing a decrease in liquidity which could lead to insolvency, while also contributing to last year's decline in investment activity.

"In the long run, that leads to stagnation and a recession in economic activity," the report said.

Loans to the private sector in the euro area, a gauge of economic health, have started growing again, suggesting the European Central Bank's monetary policy is beginning to work, ECB data showed April 29. 

The Greek financial crisis has helped make the mood at international financial talks in Washington this week ?notably more gloomy,? British finance minister George Osborne said on Friday.

Critical work remains ahead despite the world's emergence from the depths of the global economic crisis, Turkish Deputy Prime Minister Ali Babacan has said at an economic gathering in Washington.