The central governments of the larger Central and Eastern European (CEE) countries will need to borrow EUR 94 billion in 2012 to finance deficits and roll over existing debt, equivalent to an estimated 10% of their combined GDP, forecasts FITCH in a recent report published by the agency. This puts CEE-7 countries (Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, Slovenia) on a par with their peers in the eurozone's healthy core.
In the CEE and CIS regions, Republic of Moldova and Ukraine's political risk lowered, while Azerbaijan, Belarus, Croatia are bearing a higher political risk as compared to 2011, according the 2012 Aon Political Risk Map. Although EU and OECD member states were not rated in the 2012 edition of the map, Romania and Bulgaria were still taken into consideration and assigned a Low-Risk rate.
Polish T-bonds offer the best yields weighted by risk in Europe, according to a report published by Bloomberg agency.
Hungary's Government Debt Management Agency (AKK) has received HUF 62.2 billion worth of bids from primary dealers on a HUF 43 bn lot of bonds and in response to the muted demand it sold only HUF 40 bn worth of debt at auctions on Thursday, February 9th. The average yields were set close to yesterday's benchmark fixings, while they were considerably below the average yields at the previous bond auctions a fortnight ago thanks to the marked drop in yields during this period.
Although Poland is one of the fastest growing economies in Europe, the Warsaw Stock Exchange and the zloty have felt tremors after almost every shock in the global or European economy. The main reason is that Poland is seen as an emerging market and lumped in together with other, less healthy economies in the region, writes The Warsaw Voice.
Standard & Poor's Ratings Services said on January 30th that it placed its 'BBB+' long-term counterparty credit and insurer financial strength ratings on Poland-based non-life insurer Towarzystwo Ubezpieczen i Reasekuracji WARTA S.A. (WARTA) on CreditWatch with positive implications.
"Betting the future on rapid-growth markets simply because they have the right economic and demographic conditions is not enough" says Ernst&Young in its most recent report "The world is bumpy: globalization and new strategies for growth".
Standard & Poor's Ratings Services affirmed on January 17th the ratings on the following insurers and removed them from CreditWatch, while the outlooks remained negative: ALLIANZ PLC, AVIVA Insurance (Europe) SE, AXA Insurance Ltd., Irish Public Bodies Mutual Insurances Ltd. (IPB), RSA Insurance Ireland Ltd. (RSA Ireland), Pozavarovalnica SAVA d.d. and TRIGLAV Group.
Fitch Ratings says that the European Commission's efforts to enforce fiscal discipline on five EU member states show that the measures adopted to tackle the eurozone debt crisis last year are being put into practice, although this does not alter the European authorities' gradualist approach to resolving the eurozone sovereign debt crisis.
LONDON (Standard & Poor's) Dec. 9, 2011--Standard & Poor's Ratings Services today placed its ratings on the following insurers (and certain related operating subsidiaries and certain holding companies) on CreditWatch with negative implications: ALLIANZ Group (including the Euler Hermes group), AVIVA Group, AXA Group, CAISSE CENTRALE de REASSURANCE (CCR), CNP Group, GENERALI Group, Irish Public Bodies Mutual Insurances Ltd. (IPB), MAPFRE Group, MILLENNIUM bcp - Ageas Group, NACIONAL de Reaseguros S.A. (Nacional), Pozavarovalnica SAVA d.d. (SAVA), RSA Insurance Ireland Ltd (RSA Ireland), Societa Cattolica di Assicurazione (CATTOLICA), TRIGLAV Group, UNIPOL Group.
Hungary's economic growth forecast will have to be lowered to maximum 0.5%, while projected forint exchange rates must be raised; fiscal planning will be based on the new figures after an upcoming budget overhaul which will mainly target the key areas of the public sector, from education to the judiciary to the pension system, said Hungary's PM Viktor ORBAN in an interview aired by the public television on Sunday evening and whose main ideas were reproduced by Portfolio.hu.
With the Czech economy's export-driven recovery slowing, swift implementation of new reforms is needed to ensure sustainable, inclusive long-term growth and better resilience to external shocks, according to the OECD's latest Economic Survey of the Czech Republic.
After Polish Prime Minister Donald TUSK set out a program of tough reforms, in his Friday policy speech, the coalition of his centre-right Civic Platform and the agrarian Polish People's Party won a vote of confidence from Parliament's lower chamber on Sunday, November 20th. According TUSK, Poland will focus pending policy initiatives on tax policy, fiscal policy and pension reform as it focuses its efforts on areas it believes can insulate Poland from the global financial crisis to build Poland's position in Europe.