INTERNATIONAL MONETARY FUND: EASTERN EUROPE TO JOIN EUROZONE

Panorama.am
14:14 06/04/2009

Crisis-hit European Union states in central and Eastern Europe should
consider scrapping their currencies in favor of the euro even without
formally joining the eurozone, according to the International Monetary
Fund. Disclosure of the confidential report, prepared about a month
ago, could reignite a fierce debate over strategies to assist central
and east Europe. The IMF report was compiled to support a campaign
by the fund, the World Bank and the European Bank for Reconstruction
and Development to persuade the EU and eastern European states to
back a region-wide anti-crisis strategy, including a regional rescue
fund. The campaign failed amid widespread opposition from both west
and east European states. The IMF, which forecasts a 2.5 per cent
decline in regional gross domestic product in 2009, estimates that
"emerging Europe" – including Turkey – must roll over $413bn in
maturing external debt in 2009 and cover $84bn in projected current
account deficits. The report estimates that "the financing gap" –
money needed from international financial institutions, the EU and
governments – will be $123bn this year and $63bn next, or $186bn
in total.

From: Emil Lazarian | Ararat NewsPress