IMF Warns of Financial Instability in CESEE

Politics ♦ Published: October 18, 2013; 08:15 ♦ (Vindobona)

Due to the high non-performing loan quota and the deleveraging of Western banks, the countries of Central, Eastern and Southeastern Europe are still far from financial stability.

IMF Warns of Financial Instability in CESEE / Picture: ©

According to the IMF, the recovery of the CESEE region must be seen critical. The upward trend, which emerged in the last months, is mainly due to the increase in exports to the Eurozone. The frame conditions of the financial system still prove difficult.

First, West European banks continue their withdrawal from the CESEE region. The IMF underlines that lending contracts…