Central and eastern Europe countries are already quite liable to a credit crunch – these were the areas that German and French banks cut their lending to, in trying themselves to remain liquid given exposure to the PIGS. The banks still holding significant Hungarian debt include Austrian and Italian institutions, according the Telegraph. Meanwhile, not only has the forint hit an all-time low against the euro, the zloty is tumbling as well. Hungary's credit-default swaps, at a record 690 basis points, are causing Austrian CDS to blow out as well. http://www.spectator.co.uk/business-and-investments/blog/7550743/the-eus-new-vulnerability-central-europe.thtml
Thursday, 5 January 2012
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