Business has never been better for the international banks that dominate in much of central and eastern Europe. But the upheavals in international financial markets could presage more difficult times, even if the region is spared the worst of the turmoil.
Bankers say growth in central and eastern Europe is sufficiently strong for the region to weather the storm, but individual countries and companies have run into difficulties – and they may be joined by others before stability returns to world markets. As Andreas Treichl, chief executive of Austria’s Erste Bank, says: “People say things will improve in the second half of 2008 but I am not so sure because I don’t know all the bad news is out.”
