The recent recovery in Euro from 1.2 to 1.3 USD and the strength of the stock markets would make you think that the Greek Contagion is behind us.However that is far from the truth as most parts of Europe continues to see a distressed banking sector  and deteriorating public finances.Hungary which has been under a […]

There has been reports of massive debt distress in Eastern European countries following the Global Financial Crisis.One of the major factors leading to this is the problem of foreign currency denominated loans.Most of the countries in Eastern Europe became truly independent after the dissolution of the erstwhile USSR.With weak institutions and nascent democracies,these countries became […]

The Greek Contagion was precipitated by news that Greece has fudged public account figures to gain admittance to the European Union taking the help of Goldman Sachs (using structured finance products).This led to a heightened risk perception about the quality of Greek Budget figures and led to a Bond  Crisis which had to be ultimately […]

Eastern Europe moves to the spotlight Seems these days Friday equals to Red for the “Risky Assets”.Eastern Europe had moved to the periphery of world’s attention with the PIIGS in focus following the Greek Crisis.Greece came under huge pressure from the bond markets when news was revealed that it had apparently fudged government accounts to […]