The International Monetary Fund (IMF) has cut its forecast for the amount likely to be written off globally in bad loans and investments by 15%.
The total it expects financial bodies to write off between 2007 and 2010 has been cut to $3.4tn (£2.1tn) from $4tn.
The IMF said the change was made because the world economy was growing faster than had been expected.
But it has warned that the improvement should not be taken as an excuse to delay necessary financial reforms.
Its Global Financial Stability Report said that risks to the global financial system had subsided as a result of interventions by governments and central banks, as well as signs of a global recovery.
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