Bloomberg News

East Europe Delevarging Risks Stability, Vienna Initiative Says

July 20, 2012

The withdrawal of funding by western lenders in eastern Europe remains a “headwind” to economic growth in the region and it threatens external funding and financial stability should the euro-region debt crisis worsen, the Vienna Initiative group said in a report today.

The relief from the European Central Bank’s longer-term refinancing operations is wearing off and deleveraging pressures remain “substantial” in several countries, according to the report distributed by the International Monetary Fund.

To contact the editor responsible for this story: Agnes Lovasz at alovasz@bloomberg.net


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