EBRD: The deep recession in 2009 are expected in Russia, Romania, Turkey and Ukraine
Jul 24th, 2009 | By admin | Category: Main NewsHead of the European Bank for Reconstruction and Development (EBRD) Thomas Mirov believes that the deep recession in 2009 are expected in four countries - Russia, Romania, Turkey and Ukraine, where the GDP on the basis of the current year may be reduced to 4-15 %.
The scope and depth of the crisis means that we can not see a return to double-digit growth, record levels of investment and financing easily, - he believes. Furthermore, according to the TV world, concern about excessive growth in problem loans and the possibility of corporate defaults, as well as problem areas based on changes in exchange rates, transfers Reuter.
Head of the EBRD among those convinced of the need to adequately assess the impact of the current crisis and to not preclude the emergence of new problems in the future. The crisis started in the financial sector, and then spread to the real sector of the economy. The appropriate response to the financial sector will certainly strike again on bank balance sheets - described in the text of the speech TV World, prepared for the lectures in Vienna.
However, despite the difficulties, the head of the bank is convinced that the countries of Central and Eastern Europe should not give up. Theregion must seek to achieve sustainable growth at the end of the current crisis, he notes. To do this required the restructuring of private and corporate debt in order to avoid defaults, it is also important to restore credit markets. However, T. Mirov notes that demand in the region for funding by the EBRD in the near future will remain high.
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