"EASTERN EUROPE´S FINANCIAL CRISIS".
"23.02.2009."Hungary's prime minster has set up a crisis management centre to deal with the situation Eastern European currencies have been crumbling in value, because of mounting fears about a debt crisis".
"Businesses in the region are facing a double whammy; they face slowing demand for goods because of the global economic downturn, and also many companies that borrowed money from foreign lenders are having trouble meeting their payments with the falls in local currencies make the squeeze doubly painful".
"Some currencies in the region have fallen by up to 40% against the euro, and as significant chunk of eastern Europe's debts have been borrowed in euros - re-paying the debt in euros has become a huge mountain to climb".
"RESCUE NEEDED?".
"Talk is growing that a massive rescue programme may be needed, from the International Monetary Fund and European institutions. The IMF is already providing support for Latvia, Ukraine, Belarus and Hungary".
"In the boom times multi-national companies in the region created large numbers of jobs and spread new wealth. Now that's beginning to unravel. The BBC's Ian Brimacombe reports from one town in easter Europe which is waking up to the downside of globalisation Komaron in western Hungary".
"Listen Listen to Ian Brimacombe's report from Koramon (5 mins 42 secs)",
"END OF SECTION".
"FURTHER DAMAGE".
"The crisis in Eastern Europe is partly down to the fact that it is swimming in foreign debt. It is estimated that US and west European banks have lent $1.75 trillion to former eastern bloc countries".
"The fear is that these troubled debts could further damage the lenders, the Western banks and create a new phase of the credit crisis".
"Vanessa Rossi , a senior research fellow at Chatham House, the independent think-tank on international affairs in London, explains what had generated such high levels of borrowing".
"23.02.2009."Hungary's prime minster has set up a crisis management centre to deal with the situation Eastern European currencies have been crumbling in value, because of mounting fears about a debt crisis".
"Businesses in the region are facing a double whammy; they face slowing demand for goods because of the global economic downturn, and also many companies that borrowed money from foreign lenders are having trouble meeting their payments with the falls in local currencies make the squeeze doubly painful".
"Some currencies in the region have fallen by up to 40% against the euro, and as significant chunk of eastern Europe's debts have been borrowed in euros - re-paying the debt in euros has become a huge mountain to climb".
"RESCUE NEEDED?".
"Talk is growing that a massive rescue programme may be needed, from the International Monetary Fund and European institutions. The IMF is already providing support for Latvia, Ukraine, Belarus and Hungary".
"In the boom times multi-national companies in the region created large numbers of jobs and spread new wealth. Now that's beginning to unravel. The BBC's Ian Brimacombe reports from one town in easter Europe which is waking up to the downside of globalisation Komaron in western Hungary".
"Listen Listen to Ian Brimacombe's report from Koramon (5 mins 42 secs)",
"END OF SECTION".
"FURTHER DAMAGE".
"The crisis in Eastern Europe is partly down to the fact that it is swimming in foreign debt. It is estimated that US and west European banks have lent $1.75 trillion to former eastern bloc countries".
"The fear is that these troubled debts could further damage the lenders, the Western banks and create a new phase of the credit crisis".
"Vanessa Rossi , a senior research fellow at Chatham House, the independent think-tank on international affairs in London, explains what had generated such high levels of borrowing".
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