Emerging Europe debate: Back from the brink
Emerging Europe had a tough 2009, but as a new year dawns central bankers across the region hope it will bring back economic growth. The debate about regulation and ring-fencing capital begins here as they discuss how to prevent the region from plunging back into recession. Interviews by Chloe Hayward.
HG, Simor The Hungarian economy is expected to recover more slowly than its neighbours. The global crisis had similar initial impacts across the region: external demand slumped and capital inflows halted, pushing most of Central and Eastern Europe into recession. However, Hungary has had some specific difficulties including high private and public debt stocks, much of it in foreign currency. Private indebtedness has forced banks to cut back lending more radically than elsewhere.