Thursday 19 February 2009

Scare warns of potential quake ahead

The shock that has passed through central and east European markets in the past two days adds to the pressure on governments, banks and international institutions to rescue the region’s economies.

“I hate to say it,” says Erik Berglof, chief economist at the European Bank for Reconstruction and Development (EBRD), “but it is, of course, what we have been expecting. What is necessary now is to put in place what needs to be done.”

A report on Tuesday from Moody’s, the ratings agency, warning of deteriorating conditions in eastern Europe triggered turmoil in the region’s markets, which spread to western Europe and even spooked New York.

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