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IMF: UK must act to reduce debts

<div>THE GOVERNMENT has been warned it has to come up with &ldquo;credible and consistent policies&rdquo; to prevent the economy from destabilising, in a report by the International Monetary Fund (IMF).<br /><br />Ajai Chopra, the IMF&rsquo;s mission chief to the UK, said &ldquo;significant vulnerabilities&rdquo; exist in the&nbsp;financial sector and warned the pound could be destabilised if the government doesn&rsquo;t bring its own financial situation under control.<br /><br />He said Alistair Darling&rsquo;s Budget 2009 did not plan to bring down the government&rsquo;s debts fast enough to avert a crisis.<br /><br />But the report commended the government for being &ldquo;ahead of the curve&rdquo; in its policies to stabilise the banking system.</div>