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Vienna Initiative an Insurance Policy, not a Game Changer, Fitch Says
The principles adopted Tuesday in “Vienna Initiative 2.0” do not change Fitch’s base case expectation that central, eastern and south-eastern Europe (CESEE) will continue to see weak, or marginally negative, credit growth in the near-to-medium term.
Vienna Initiative an Insurance Policy, not a Game Changer, Fitch Says / Picture: © Vindobona.org
The latest initiative does, however, reduce the risk of a more negative downside that would result from sharp regional deleveraging along with aggressive repatriation of parent bank funding and capital. It may also help to create a platform to promote banking sector stability in the region and, over time, gradually reduce system imbalances, the rating agency says.
“It has been…
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