Sept. 24 (Bloomberg) -- U.K. Chancellor of the Exchequer George Osborne called for immediate, “credible” action from euro area countries to support their banks and indebted nations, saying policy makers are facing a “loss of confidence” in financial markets.
“Credible political commitments will be required in the immediate period ahead,” Osborne said in a statement to the International Monetary Fund in Washington today. “Further action will be needed.”
Osborne said policy makers face a greater challenge now in drafting a response than they did in 2008, when losses from sub- prime home loans in the U.S. triggered a recession in developed economies.
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