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Slovakia: Credit Crunch? What Credit Crunch!
Productivity in the region has not always been high, but the Slovakian economy has a greater chance of improving in the face of the credit crunch than longer established economies such as the UK.
MILLY BERNICE discusses why the credit crunch could end up working in Slovakia's favour.
A report in the Slovakias biggest economic newspaper Hospodřské Noviny called for greater competition in the telecommunications and energy markets. The report from liberal economic think tank FA Hayek, also suggests that the government should reduce red-tape to persuade new companies to enter these markets in Slovakia. The government is said to be in favour of encouraging healthy competition.
The report explained that productivity in the region has not always been high, but that the Slovakian economy has a greater chance of improving in the face of the credit crunch than longer established economies such as the UK.
This follows news that the Slovakian banks are unlikely to need any rescue packages, with only one bank in the region falling out of the black. Slovakian based banks have not invested in the US securities markets that have been at the centre of the credit crunch, and customer deposits outweigh borrowing by 20%. Unlike much of Europe, including near neighbour Hungary, the banks collectively made a profit in excess of 500m Euros in 2008.