Mr. Guy Debelle the RBA assistant governor said today global financial markets are healing from the sharp drop witnessed after the collapse of Lehman Brothers Holdings Inc, but still threats founded due o the increasing bad loans in the euro area and the U.S.

Debelle added that many of the problems in the past few years were associated with sovereign concerns, and risks stemmed from the financial sector are still there. The EU leaders are paying efforts to fight the debit crisis sparked by Greece's widening budget deficit and spread in the euro area, which is raising concerns about global recovery.