Markets

Ian Harnett on concerns over lending to eastern Europe

Part 3, Feb 4: Ian Harnett, managing director of Absolute Strategy, an independent financial consultancy, warns that currency volatility could hit hard the purchasing power of eastern Europe. He tells Gillian Tett, global markets editor, that growth in this region has largely been financed through foreign currency lending, largely in euros, and some of it unhedged. He says this is where the major risk will come from.