How Many Countries Will Need IMF Help?
It’s now clear that the global financial crisis has not only crossed the Atlantic into Europe, it has spanned the entire continent. Just weeks ago the vulnerability that emerged in the United Kingdom and flashed before the world as Iceland’s banking sector imploded looked confined to Western Europe. After all, many analysts said, Central and Eastern European economies are little exposed to the mortgage-backed securities behind the meltdown, and for most, their fundamentals and growth are strong. Then came news at the end of October that the International Monetary Fund was negotiating multibillion dollar bailout packages for Ukraine and Hungary, the latter of which had already received a nearly $7 billion credit line from the European Central Bank. Suddenly, there were murmurs of an Iceland sequel in the east. The IMF, which has now reached loan deals with both countries, seems committed to restoring confidence in battered economies, so that probably won’t happen. But with regional curr
