>IMF to boost EM liquidity (DANSKE MARKETS)

Agenda

■ Short market overview
− Improved global risk appetite brought down emerging market risk premiums during March and the beginning of April.
− Emerging market FX rates rebounded on the back of the improved risk sentiment and new IMF initiatives.

■ Macro overview
− Over the last month we saw more signs of stabilisation in the global industrial cycle.
− Regional PMIs improved further in March in emerging markets, suggesting that they bottomed out in January/February.
− Recovery in China gains strength -- what are the implications?

■ Special focus: IMF to boost EM liquidity
− The IMF reformed its arsenal of credit facilities in order to get more funds out faster and with fewer conditions attached – at least for countries with strong fundamentals.
− Further, at the G20meeting, it was decided to boost IMF’s lending resources to USD 750bn.

To see full report: IMF