A quick overview of the situation facing CEE on Wednesday:
Latvia
- The government’s latest debt auction fell flat on Wednesday, with investors picking up only 2.04m of the 24m lats worth of debt on offer.
- Five-year credit default swaps for Latvia CDS widened to 513.8 bps from 479.8 bps the day before.
- The country still has to pass fiscal reforms necessary to meet IMF conditions for aid.
- Fitch has warned the country risks a further ratings downgrade.
- Government: one administration already lost, latest coalition reportedly cracking up.
Romania
- Thousands of Romanian trade unionists protested on Wednesday in a demonstration of growing discontent over IMF-mandated fiscal reforms.
- The country still has to pass fiscal reforms necessary to meet IMF conditions for aid.
- Government: Recently collapsed ( Romania’s Social Democrats quit the coalition government on Thursday in protest over the sacking of a minister).
Lithuania
- Fitch warned on Wednesday Lithuania could be downgraded, following Moody’s downgrade of the sovereign borrower on September 29.
Poland
- Prime Minister Donald Tusk reshuffled his government on Wednesday in an effort to draw a line under a lobbying scandal that has harmed the image of his ruling centre-right Civic Platform (PO).
Estonia
- Estonian consumer prices fell a record 1.6 per cent year on year in September.
Related links:
Defcon Latvia, again – FT Alphaville
Emerging Europe outlook: still bleak – FT Alphaville