International financial institutions supported the Initiative
This week, the Vienna Initiative Steering Committee, organized in 2008 to deal with the crisis, held a meeting in the Austrian capital and identified priorities for its activities in 2014. The meeting was led by Raiffeisen Bank International.
Report on the five areas of the organization’s activities is published on the website of the World Bank.
1. Creating a pan-European banking union, whose work will be on addressing the problems of countries of Southeast Europe that are not part of the EU.
They must establish relations between the European Union and those countries that are on their way to join. To do this, they are to create a network of European banks outside the Union.
In parallel, it is necessary to establish a unified mechanism for monitoring the financial institutions and the system of elimination of insolvent banks. This issue should also be a subject of special attention to countries that are not members of the EU.
2. Observation of trends in lending and reducing fund borrowing in Central, Eastern and Southeastern Europe.
The reduction of financial transactions between countries, a large percentage of non-performing loans and the prospect of worsening financing conditions represent a significant risk to the economic recovery in the region.
3. Workaround overdue loans in Central and Eastern Europe. The level of bad loans in many countries in the region continues to grow. This makes it difficult to increase lending and economic recovery. Workaround will deal with banks and international financial institutions. In 2014 they will develop a joint action plan in this area.
4. Improving credit quality and reducing risk when you make a new loan against the backdrop of the unstable situation in the countries of Central and Eastern Europe. The Vienna Initiative has formed a working group which will evaluate existing credit support schemes and develop more effective suggestions.
5. The development of local funding sources in Central and Eastern Europe. Checking the model of international financial transactions requires speedy diversification of sources of funds. The development of local currency markets is of particular importance. Progress in this area must be accelerated to help creditors.
International financial institutions are willing to participate actively in the Vienna Initiative.
