WASHINGTON, Sept 17: The head of the IMF Dominique Strauss-Kahn on Wednesday warned that the crisis shaking US and global markets posed a potential risk for world economic growth.

In a statement issued after a Gulf Cooperation Council meeting in Jeddah, Strauss-Kahn said that since the last GCC talks “the difficulties in the US financial sector have adversely affected global growth prospects.” The latest series of events, which have seen US institutions such as American International Group bailed out by the US government, were part of a financial sector restructuring and consolidation, he said.

“At the same time, the speed and scale of these events have added to short term uncertainties and further significant financial strains cannot be ruled out.” —AFP