Credit crunch to hamper growth in eastern Europe
Tuesday, 2 October 2007
LONDON, Oct 1 (AFP): A credit crunch in global financial markets will limit growth in eastern Europe and former Soviet republics, the chief economist of the European Bank for Reconstruction and Development (EBRD) has said, according to the Financial Times today.
Citing a note he wrote to bank staff, the business daily reported that Erik Berglof said that the countries the EBRD invests in had "weathered this turbulence in financial markets very well" because of strong past economic growth and market-oriented reforms.
"We are certain that the crisis in the west will be a serious one and this means it will definitely have an impact on our countries," Berglof said, according to the FT.
"The more important effects will come in the longer term as growth will come down, from very high levels, due to the difficulties and higher costs associated with obtaining credit."
Citing a note he wrote to bank staff, the business daily reported that Erik Berglof said that the countries the EBRD invests in had "weathered this turbulence in financial markets very well" because of strong past economic growth and market-oriented reforms.
"We are certain that the crisis in the west will be a serious one and this means it will definitely have an impact on our countries," Berglof said, according to the FT.
"The more important effects will come in the longer term as growth will come down, from very high levels, due to the difficulties and higher costs associated with obtaining credit."