Jump to content
House Price Crash Forum
Sign in to follow this  
alabala

Eastern Europe, Again

Recommended Posts

http://www.reuters.com/article/rbssFinanci...04?rpc=401&

The government said the plan is to freeze credit and interest payments on at least 20 percent and in some cases up to 50 percent of the loan amount for borrowers who lose their jobs.

If borrowers still can't afford the remaining monthly payments, the state will cover them until borrowers are able to do so.

The government said it has consulted with the IMF and banks operating locally about the plan, with details still to be agreed.

http://easterneuropeeconomy.blogspot.com/2...alue-later.html

http://www.marketoracle.co.uk/Article12508.html

Economic disaster

Already the country is one of the worst hit in the EU by the two year old global crisis, and among emerging markets second only to Ukraine. Landmark property developments such as the twin Panorama Plaza towers on the road between Riga and the airport stand all but empty and shopping malls are ghost towns.

The Government debt is now 64% of GDP and official unemployment stands at 16%. In the first three months of this year GDP fell a dramatic 18%. By contrast, during the easy money lending binge in 2005-2007 the Latvian economy was booming at China-style growth rate of 10% a year, all on borrowed Euros.

Now that casino has closed, a victim of the global crisis. House prices fell by one-third last year, business insolvencies are up and banks are repossessing more mortgaged properties and leased cars. In Riga the average price of an apartment has dropped 68% since the crisis first began in August 2007.

The economy is in a free-fall. Latvian foreign trade is down year-on-year by 38%--no green shoot here. Exports are down year-year for January-May by 28% and imports by 40%. Industrial output is down year-on-year by 19%. Retail sales are down by 24%.

Share this post


Link to post
Share on other sites
The government said the plan is to freeze credit and interest payments on at least 20 percent and in some cases up to 50 percent of the loan amount for borrowers who lose their jobs.

If borrowers still can't afford the remaining monthly payments, the state will cover them until borrowers are able to do so.

The banks MUST have their money back by hook or by crook. If an individual cannot repay then burden everyone else with their debt. Cyclops Brown probably thinks this is a fantastic idea. After all, we have the lowest levels of debt in the Western world, nay, universe.

The government said it has consulted with the IMF and banks operating locally about the plan, with details still to be agreed.

Obviously the IMF has the Latvian peoples' best interests at heart and not the banksters'. No siree

Share this post


Link to post
Share on other sites
Whats the real average wage in these places? The house prices dont seem dissimilar to here.

It has a GDP of 48% of the UK numbers. So it makes sense for the avarage wage to be a similar percentage

tim

Edited by tim123

Share this post


Link to post
Share on other sites
Meanwhile, Poland continues to have economic growth.

Indeed, however its rather miniscule and hardly worth shouting about. How about 11% unemployment rate and add to that 2 milion Poles that left the country. The Goverment lost the plot how to plug budget deficit, PLN is up over 10% so there will be fewer exports. House prices are down 10-20% in a year.

In Poland you get Western prices and Eastern wages.

Share this post


Link to post
Share on other sites
Indeed, however its rather miniscule and hardly worth shouting about. How about 11% unemployment rate and add to that 2 milion Poles that left the country. The Goverment lost the plot how to plug budget deficit, PLN is up over 10% so there will be fewer exports. House prices are down 10-20% in a year.

In Poland you get Western prices and Eastern wages.

Growth maybe lower that before but its the difference between getting richer and getting poorer. Which would you prefer?

Wages are indeed low, but prices are very low. House are also stunningly cheap (except Krakow, Warsaw and the coast, which are at UK levels), so much so you need a permit to buy if you aren't Polish.

Edited by Peter Hun

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   287 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.