Global finance 'as vulnerable' as in 2008: ex-ECB chief

AFP
 09/04/2018 12:53 PM MDT
Jean-Claude Trichet
Credit: Wikipedia Commons

Paris (AFP) - Too much debt has made the world's financial system as vulnerable as it was 10 years ago, Europe's top central banker during the 2008 global meltdown has warned as he looks back on the crisis.

"There is now agreement that the excessive debt level in advanced economies was a key factor in the triggering of the global financial crisis in 2007 and 2008," Jean-Claude Trichet, who ran the European Central Bank between 2003 and 2011, told AFP in an interview.

"The growth in debt, especially private debt, in advanced countries has slowed, but this slowdown has been offset by an acceleration of emerging country debt," said Trichet, a Frenchman who ran his country's central bank, the Banque de France, before taking the helm at the ECB.

"This makes the entire global financial system at least as vulnerable as it was in 2008, if not more so."

From:
AFP
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