Total cost of world financial crisis at $11.9 trillion: IMF

Written by Press Trust of India | London | Updated: Aug 10 2009, 06:26am hrs
The world has spent a staggering $11.9 trillion to wriggle out of the financial crisis, the sum which is enough to finance a -1,779 handout for every person living on the planet, The Telegraph said quoting the IMF.

Citing IMF calculations, the news report said, Most of the cash has been handed over by developed countries, for whom the bill has been $10.2 trillion, while developing countries have spent only $1.7 trillion the majority of which is in central bank liquidity support for their stuttering financial sectors.

The whopping total cost of crisis is equivalent to around a fifth of the entire globes annual economic output and

includes capital injections pumped into banks in order to prevent them from collapse, the cost of soaking up so-called toxic assets, guarantees over debt and liquidity support from central banks. Although much of the total may never be called on, the potential outlay still dwarfs any previous repair bill for the global economy, The Telegraph said.

The IMF figures also show that Britain has been the biggest of all the spenders on emergency measures to support its financial sector, with its total bill for the clean-up amounting to 81.8% of its GDP equivalent to 1,227billion.

Countries that make up the G-20 grouping will face a combined Budget deficit of 10.2% of GDP in 2009 the biggest since the World War-II. Although the biggest will be faced by the US, with 13.5% of GDP, Britain also faces an 11.6% deficit and Japan a 10.3% one.