Subprime Fallout Coming to Eastern Europe?

In a survey of emerging countries, S&P identifies eight vulnerable to credit risk. Topping the list: Latvia, Iceland, and Bulgaria

When the shockwaves from the U.S. subprime loan crisis first hit Europe, it appeared that the impact might be limited to the private sector. The European Central Bank scrambled to provide liquidity (BusinessWeek, 8/10/07) for commercial lending, and volatility died back. On Sept. 6 the bank left its official interest rate unchanged, (BusinessWeek, 9/6/07) easing, for now, the risk of mounting credit costs.

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