Moody’s: Western banks do not want to rescue “daughters”
18 February 2009International rating agency Moody’s Investors Service expresses concern concerning readiness of the West European banks to support to the affiliated companies in the Eastern Europe in terms of promptly worsening macroeconomic climate.
As it is marked in Moody’s report, after several years of rapid growth in economy of the Eastern Europe, the period of deep and long recession has come. In result the western banks have faced the raised risk of profitableness reduction in the sphere of investments in development of the affiliated structures in this region.
Moody’s proves that though the East Europe countries differ on vulnerability degree, situation among the countries with investment class ratings is difficult and the greatest deficiency of the state budget is observed in Baltic countries, Hungary, Croatia, Romania and Bulgaria. Nevertheless, the rating agency also notices, that some countries of region, including Ukraine, Kazakhstan and Russia, are under pressure, even despite rather low level of external debts of state sectors.
West European banks, having branches in the Eastern Europe, are basically banks from Austria, Italy, France, Belgium, Germany and Sweden. These six countries possess about 84 % of total amount of the rights of the requirement of the West European banks in the Eastern Europe.
- European banks are looking for way out from crisis
- AIG has directed more than half of the means allocated for its rescue
- American banks will rescue bankrupt house owners
- Japanese banks become more active
