IMF warns of Latam overheating, credit bubble risks

CALGARY, Alberta, March 26 (Reuters) – The head of the
International Monetary Fund warned on Saturday that many Latin
American economies showed signs of overheating and that the
region was at risk of credit bubbles.

“Growth in most Latin American economies is now back at
potential or above — and in many of them there are worrisome
signs of overheating,” IMF Managing Director Dominique
Strauss-Kahn said in a blog that coincided with his visit to
Calgary in Canada, where policymakers from the Americas were
meeting during the weekend.

“Financial deepening (in Latin America), though welcome,
can bring its own challenges, for example, the risk of credit
bubbles,” Strauss-Kahn said.
(Reporting by Jason Lange and Louise Egan; Editing by Bill
Trott)

IMF warns of Latam overheating, credit bubble risks