BBC Learning English
Words in the News
11

th

February 2011

IMF ‘downplayed risk of financial crisis’

Words in the News

© British Broadcasting Corporation 2011

Page 1 of 2

bbclearningenglish.com

An investigation of the International Monetary Fund concluded that the institution

downplayed the risks faced by the world economy before the 2008 financial crisis. The

enquiry was carried out by the IMF’s Independent Evaluation Office. Andrew Walker reports:

The report includes some striking criticism of the IMF's performance ahead of the crisis. The

agency provided few clear warnings about the risks, the report says.

IMF surveillance of the economic situation was characterised by over-confidence in the

soundness of large financial institutions. The risks associated with housing booms and

financial innovations, subsequently called toxic assets, were downplayed.

The IMF's managing director Dominique Strauss-Kahn welcomed the report, which he said

puts forward many constructive ideas and is consistent with the Fund's own analysis.

The IMF has had a central role in responding to the crisis, with emergency loans and other

assistance for some countries. The IMF has a continuing role in dealing with the financial

problems in the Euro area, where it is providing loans to both Ireland and Greece.

Andrew Walker, BBC News

Words in the News

© British Broadcasting Corporation 2011

Page 2 of 2

bbclearningenglish.com

Vocabulary and definitions

striking

very noticeable or unusual

warnings

things said or written to tell people about a possible danger

surveillance

careful watching of something

soundness

stability

housing booms

times when a lot of houses are being built and sold for high

prices

toxic assets

investments backed by risky mortgages that are held by

large banks, and that have lost value, dragging down

banks' balance sheets

puts forward

suggests or presents

constructive

helpful or positive actions or comments

consistent

behaviour or actions which are the same over a period of

time

emergency loans

lending of money which is desperately needed

More on this story:

http://www.bbc.co.uk/news/business-12406718

Read and listen to the story and the vocabulary online:

http://www.bbc.co.uk/worldservice/learningenglish/language/wordsinthenews/2011/02/110211_witn_imf_page.shtml