Tuesday, January 17, 2012

Emerging Europe will be the most serious areas of the European debt crisis

French media (www.lesechos.fr) Jan 16th reported that, according to the French Export Credit Insurance Company (COFACE) latest report shows that country risk, emerging European countries have become intensified by the European sovereign debt crisis areas worst hit, the region's economy is currently in trade and other aspects of external bank lending tightening effect gradually. Due to emerging countries directly affected by the euro zone sovereign debt spread, the Bank of Western European countries will reduce their branches in these emerging countries, financial support. Since 2000, Eastern Europe became the world's fifth largest economy in the fast-growing region, mainly due to the support of a large number of external loans, it is estimated that claims to support the European banking sector in Eastern Europe about 70% of the GDP growth. Moreover, as these economies received a large number of mostly private sector external loans, with loans from the gradual depletion of European and Eastern European emerging economies will suffer a huge impact. COFACE also suggested that North Africa and the Middle East should be alert to the wave of political change in Eastern Europe may have increased the political risk.

COFACE report also shows that in 2011 global insurance accident insurance, expenses increased 19%, of which euro-zone countries involved in the business expenses grew by 28%.

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