Liz Truss pension episode flags risk of further financial crises, says IMF

The near collapse of pension funds under Liz Truss exposed a ‘perilous’ financial phenomenon, the IMF report said. Photograph: Henry Nicholls/Reuters

The near collapse of Britain’s pension funds during Liz Truss’s brief premiership highlights the risk that higher global interest rates will trigger more financial crises in the coming months, the International Monetary Fund (IMF) has warned.

In a report, the agency based in Washington DC said the rescues of Silicon Valley Bank and Credit Suisse may not have been isolated incidents and that there was a chance that problems could stretch beyond the traditional banking sector to pension funds, insurers and hedge funds.