Nowotny: Must Avoid Bubble in CESEE

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ECB Governing Council member Nowotny indicates that the CESEE region is still vulnerable to asset bubbles.

In the year before 2008, foreign banks pursued an aggressive lending policy. The markets began to overheat as the inflow of foreign capital was mainly used for consumption purposes. After 2008, the non-performing loan ratio grew steadily. In the Southeast European region as…