Sunday, October 12, 2008

Ukraine’s government seized Prominvestbank this week, suspending payments to creditors.

Financial crisis: Countries at risk of bankruptcy from Pakistan to Baltics

A string of countries face the risk of "going bust" as financial panic sweeps Asia, Eastern Europe, and Latin America, raising the spectre of a strategic crisis in some of the world's most dangerous spots. Nuclear-armed Pakistan is bleeding foreign reserves at an alarming rate leading to fears that it could default on its loans. There are mounting fears that Ukraine, Kazakhstan, and Argentina could all now slide into a downward spiral towards bankruptcy, while western banks exposed to property bubble across Eastern Europe have seen their share price crushed. The markets are pricing an 80pc risk that Ukraine will default, based on five-year credit default swaps (CDS) – an insurance policy on a country being able to pay its debts. UK vision blinkered as usual

Posted by malct @ 04:51 PM (632 views)
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2 thoughts on “Ukraine’s government seized Prominvestbank this week, suspending payments to creditors.

  • With Countries now teetering on the edge of bankruptcy – how far will houseprices fall now? Seems to be off topic for now.

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  • mountain goat says:

    Erm what about Western Europe. John Mauldin writes “As noted last week, Ireland set off a feeding frenzy when it guaranteed all deposits in its banking institutions. Five billion euros poured in over the last week. Let’s look at the Irish guarantee on the face of it. There are six Irish banks, holding assets of $576 billion. That works out to three times Ireland’s gross domestic product, or about $200,000 for every working person in the country. (Bedlam Asset Management) Yet depositors flooded them with money in just a few days.”

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