This article was first published on the website of the European Bank for Reconstruction and Development (EBRD).
The Swiss National Bank’s January decision to remove the Swiss franc’s cap against the euro has sent shockwaves through the global economy. It triggered particularly strong reactions in parts of central and south-eastern Europe, where currencies in some countries came under severe pressure.
Russia will fall into a deep recession following the ruble’s collapse and the sharp decline in the price of oil, and will drag down with it many other countries in the region this year, new forecasts from the European Bank for Reconstruction and Development (EBRD) show.
The European Bank for Reconstruction and Development (EBRD) said it has applied for regulatory approval to raise its stake in Moldova’s third-largest bank, Victoriabank, “with the aim of restoring effective corporate governance at the bank and ensuring its continued sound financial performance.”
Countries in the region where the European Bank for Reconstruction and Development (EBRD) operates will see their annual growth rate slowing to 1.3% this year from last year’s 2.3%, the bank predicts in its annual transition report.
The reform process has been stalling in Central, Eastern and South-Eastern Europe and in the former Soviet countries even since before the crisis, and it has even reversed in some countries, the European Bank for Reconstruction and Development’s Transition Report 2013 shows.
The European Union, which for a long time has acted as a catalyst for reforms in emerging Europe and in the former Soviet Union, is now failing to fulfil that function, billionaire investor George Soros said on Wednesday.
The Asset Quality Review (AQR) that the European Central Bank (ECB) must carry out on banks in the eurozone as part of moves towards becoming the banking union’s single supervisor could increase the deleveraging already happening in Central, Eastern and Southeastern Europe, EBRD chief economist Erik Berglof told Marketmoving.info.