ECB warns on foreign currency loans

The European Central Bank issues a report on financial stability in Romania, Bulgaria, Croatia and Turkey, July 2006. Extensive borrowing in foreign currencies by consumers and businesses in aspirant European Union member countries could escalate dramatically local financial crises, the report warns.

ECB: Macroeconomic and financial stability challenges for acceding and candidate countries, by the Task Force on Enlargement of the International Relations Committee, Occasional Paper, No.48, July 2006 http://www.ecb.int/pub/pdf/scpops/ecbocp48.pdf

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