Toxic debts could reach $4 trillion, IMF to warn

Toxic debts racked up by banks and insurers could spiral to $4,000bn (£2,700bn), the Times reported, citing new forecasts from the International Monetary Fund due to be published on April 21. The IMF said in January that it expected the deterioration in US-originated assets to reach $2,200bn by the end of next year, but the Times understands it to be looking at raising that to $3,100bn in its next assessment of the global economy. In addition, it is likely to boost that total by $900 billion for toxic assets originated in Europe and Asia.