CE Europe "to face lack of capital in 2011"

Former governor of the National Bank of Serbia Radovan Jelasic says central and eastern Europe will experience a lack of capital on the market in 2011. He added that individual economic policies will dictate whether any extra capital will be found. CE Europe "to face lack of capital in 2011" "I can say that many in the region hope the good old times are going to return, that there will be plenty of foreign cheap capital. Unfortunately, that is probably not going to happen," Jelasic told Tanjug during a Euromoney conference in Vienna on Tuesday. Many foreign investors are going to wait and see the new growth models for each country, he noted. "So, they first want to see what the countries will do and then decide how much to invest. One thing is certain, the amount of that money will be reduced. Also, it is apparent a number of countries in the region wish to raise their public debt since they need additional funds to finance the budget deficit," Jelasic explained. Financing the deficit is going to be a great challenge for the governments in the region, he stated, adding that they would face inflation as well. The Euromoney conference is held in Vienna each year and has represented one of the most important investment events in the region for over a decade. The conference gathers high-ranked political officials, investors and representatives of financial institutions.

CE Europe "to face lack of capital in 2011"

"I can say that many in the region hope the good old times are going to return, that there will be plenty of foreign cheap capital. Unfortunately, that is probably not going to happen," Jelašić told Tanjug during a Euromoney conference in Vienna on Tuesday.

Many foreign investors are going to wait and see the new growth models for each country, he noted.

"So, they first want to see what the countries will do and then decide how much to invest. One thing is certain, the amount of that money will be reduced. Also, it is apparent a number of countries in the region wish to raise their public debt since they need additional funds to finance the budget deficit," Jelašić explained.

Financing the deficit is going to be a great challenge for the governments in the region, he stated, adding that they would face inflation as well.

The Euromoney conference is held in Vienna each year and has represented one of the most important investment events in the region for over a decade. The conference gathers high-ranked political officials, investors and representatives of financial institutions.