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Royal Bank of Scotland: Romania could fail to honor its foreign financial obligations

de A.C.
Joi, 2 iulie 2009, 13:56 English | Regional Europe

Eight Eastern European countries, among which Romania, might be unable to pay their financial obligations, Royal Bank of Scotland analyst Timothy Ash declared quoted by Romanian news agency Mediafax. Eastern Europe registered in general, deep current account deficits and took up immense foreign loans, Ash explained.

Regional economies might witness a tough landing due to the rigid exchange rate systems, RBS notes. Most Eastern European states obtained, in the last year alone, foreign loan packs worth 90 billion dollars to deal with the global financial crisis.

Romania agreed to take up an IMF loan of 20 billion dollars, sustained by the EU, World Bank, IMF and the European Bank of Reconstruction and Development and the European Investments Bank. 

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