Europe’s sovereign debt crisis is now again coming front and centre, but it’s not just the PIIGS in the spotlight.Hungary, Romania, and Serbia are also struggling to sell off new government debt even though IMF support is in place, according to Bloomberg.
In fact, Romania has failed to sell debt at every auction since July.
From Bloomberg (emphasis our):
Serbia failed to attract enough bids to cover offers in six out of 25 debt auctions since the start of June, while Romania failed to sell any debt in four auctions since the launch of an austerity program in July and had only partial sales in 10 other auctions. Hungary’s auction last week also came up short.
And it isn’t like these countries aren’t getting any help already. In support of their austerity plans, the IMF provided at total of $55 billion for the 3 countries. Romania has just agreed to take more support loans from the IMF.
What this does point out is that markets don’t become more confident in countries because they enact austerity plans. Instead, they are more concerned about tax receipts, and whether these weak European countries can return to growth, and pay their creditors on time.
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