World Bank Sees East Europe Crunch Risk, Burns Tells Wiener
“Europe’s banking sector needs to reduce risks, raise capital and increasingly set aside risk provisions,” Burns, who heads the World Bank’s global macroeconomics team, told the Vienna-based newspaper. “All of this could impact the credit provision to the private sector.”
“The problem is especially virulent in eastern Europe and central Asia because those countries strongly depend on loans from developed countries,” Burns added.
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