Credit crunch fears for eastern European countries
The cost of insuring the debt of eastern European countries rose to record highs on Monday, the FT reports.
The cost of insuring Russian debt against default rose to all-time highs of about 770 basis points, or €770,000 ($981,000), to insure €10m of debt annually over five years. This is about 100bp higher than at the start of the year.
Other big eastern European economies also saw credit default swap prices jump to record levels.
Poland’s CDSs rose to about 420bp, the Czech Republic’s to about 340bp, Hungary’s to about 580bp and Ukraine’s to about 4,000bp.
