The IMF has issued a warning that losses related to subprime mortgages could surpass previous projections. The organization’s assessment reflects growing concerns about the ongoing impact of the U.S. housing market crisis on the global financial system.

According to the IMF, the complexity and opaqueness of mortgage-backed securities make it difficult to accurately gauge the full extent of potential losses. This uncertainty contributes to market volatility and investor anxiety.

Key factors contributing to the increased risk include:

• Rising foreclosure rates in the United States
• Declining housing prices
• Tightening credit conditions

The IMF has urged financial institutions to increase transparency and strengthen risk management practices. It also emphasized the importance of international cooperation to address the systemic risks posed by the subprime mortgage crisis.

The fund suggests that coordinated policy responses are needed to mitigate the negative effects on economic growth and financial stability. These responses may include measures to support housing markets, ease credit conditions, and restore confidence in the financial system.