Worst of crisis over for east, central European banks
The haemorrhaging of reserves in central and eastern European banks, which at one stage threatened the global financial architecture, is over, the European Commission said.
By Agencies |
BRUSSELS: The haemorrhaging of reserves in central and eastern European banks, which at one stage threatened the global financial architecture, is over, the European Commission said on Friday.
But while the European Bank Coordination Initiative said the economic outlook was improving, it also warned that "important challenges remain" throughout the finance-starved region.
A statement by Brussels following talks between the major players in the area said tweaks to "local regulatory frameworks" were needed along with "coordinated and harmonised stress testing" in order to maintain credit supply.
The so-called 'Vienna' initiative gathers the International Monetary Fund, the European Bank for Reconstruction and Development, the European Investment Bank, the World Bank and the European Central Bank alongside the European Commission.
Parent banks based in European Union countries including France, Germany and Italy that helped refloat subsidiaries in Bosnia-Herzegovina, Hungary, Latvia, Serbia and Romania were also present alongside central banks and national financial supervisors.
"The participants expressed satisfaction over the positive role ... played in averting a systemic crisis in the region in the past year in the context of a worse than foreseen economic environment," according to the statement.
IMF and other institutional and European Union support running to 52 billion euros (76 billion dollars) had "helped stabilise the economies in the region," it said.
But the bodies said progress would only be fully reviewed at the IMF-World Bank annual meetings in Istanbul on October 6 and 7.
But while the European Bank Coordination Initiative said the economic outlook was improving, it also warned that "important challenges remain" throughout the finance-starved region.
A statement by Brussels following talks between the major players in the area said tweaks to "local regulatory frameworks" were needed along with "coordinated and harmonised stress testing" in order to maintain credit supply.
The so-called 'Vienna' initiative gathers the International Monetary Fund, the European Bank for Reconstruction and Development, the European Investment Bank, the World Bank and the European Central Bank alongside the European Commission.
Parent banks based in European Union countries including France, Germany and Italy that helped refloat subsidiaries in Bosnia-Herzegovina, Hungary, Latvia, Serbia and Romania were also present alongside central banks and national financial supervisors.
"The participants expressed satisfaction over the positive role ... played in averting a systemic crisis in the region in the past year in the context of a worse than foreseen economic environment," according to the statement.
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IMF and other institutional and European Union support running to 52 billion euros (76 billion dollars) had "helped stabilise the economies in the region," it said.
But the bodies said progress would only be fully reviewed at the IMF-World Bank annual meetings in Istanbul on October 6 and 7.
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