Eastern Europe within the EU should abandon its currency for the euro, while not formally endorsing the euro. With such a proposal was made by the International Monetary Fund (IMF), writes The Financial Times. As said the fund, "evroizatsiya" would allow those States to resolve the problem of the huge external debt.
The EU, in turn, could ease the rules for eurozone, the IMF noted in a statement. The document was drafted with a view to persuade the EU and Eastern European countries to formulate a general anti-crisis strategy that would include the creation of a specialized fund for the support of caught in the crisis economies.
Developing countries in Eastern Europe, including Turkey, in 2009 to pay or refinance about 413 billion dollars of foreign debt. In addition, they will need to cover the total balance of payments deficit amounting to 84 billion dollars. However, not all States in the region have the means to do so. They may take up to 123 billion dollars of external financing in order to avoid financial kraha.V while euro zone to oppose the IMF proposals, fearing that the plight of Eastern European countries will exacerbate the financial difficulties within the euro zone. Central Europe is also not supported the initiative of the fund.
Eastern European countries were among the most severely affected by the global crisis. Some of them, in particular, Latvia and Ukraine, are in a position close to default. The IMF has provided the States of the region to rescue their economies, the credit line amounting to almost $ 100 billion.
Tuesday, April 7, 2009
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