Credit Crunch in CESEE?

Politics ♦ Published: August 7, 2013; 07:22 ♦ (Vindobona)

The capital outflow in the CESEE region accelerates. The European Bank for Reconstruction and Development (EBRD) fears negative consequences for the real economy.

Credit Crunch in CESEE? / Picture: ©

According to EBRD, CESEE might face a credit crunch. In the CESEE region, about 60% of the banks are owned by West European banking groups. Since 2008, West European banking groups have been shifting € 130bn out of the region. This corresponds to 33% of the exposure of 2008.. In 2008, a first wave of capital outflow hit the CESEE region. In 2011, a second wave has started. Contrary to…