Eastern Europe is on the verge of a financial crisis similar in nature to the Asian Financial Crisis erupted in 1997!
Yesterday the local currencies took a dive, trading at a sentiment most worrisome to the analysts. The sign was clear that the foreign funds were on outflow to seek safe heaven.
Eastern Europe is heavily burdened with foreign debts and it has been relying on foreign funds to drive its economy.
During good times, all seemed to go well. Now with the globe in recession, Eastern Europe is one of the hardest hit zones. Like Asia, Eastern Europe is export-oriented, but it is very much financially fragile when compared with the former.
IMF and World Bank have got to come in now to rescue the region.
Yesterday the local currencies took a dive, trading at a sentiment most worrisome to the analysts. The sign was clear that the foreign funds were on outflow to seek safe heaven.
Eastern Europe is heavily burdened with foreign debts and it has been relying on foreign funds to drive its economy.
During good times, all seemed to go well. Now with the globe in recession, Eastern Europe is one of the hardest hit zones. Like Asia, Eastern Europe is export-oriented, but it is very much financially fragile when compared with the former.
IMF and World Bank have got to come in now to rescue the region.
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