However, I don’t know anyone bold enough to claim to have accurately predicted the breadth and depth or the ramifications of the current problems. The distortions emanating from the US subprime mortgage market have been placing a strain on the international financial system now for several months in a way that constitutes a challenge for us all.
A key factor behind the reduction in uncertainty was the IMF Executive Board’s approval of the first review of Ukraine’s progress in implementing the Stand-By Arrangement and the extension of this arrangement until June 2022. This factor partly offset the effect of stronger geopolitical risks on the financial markets.