‘More banks may fail’ -IMF

The International Monetary Fund (IMF) has warned that more European banks may fail as doubts persist about the viability of their business models.



The IMF said private funding is virtually unavailable and banks will have to rely on public intervention, asset sales and consolidation.



The IMF also warns that euro zone economic growth will almost grind to a halt next year.



According to the IMF, growth in the 15 euro countries will fall to just point two per cent in 2009.