Romania Is The Scariest Place In The World For Austrians Right Now


Austria may not be as flashy a name as Spain or Portugal, but it too has serious worries about European debt contagion.

The source, however, is a bit different than its peers.

Ziarul Financiar have run with the headline “Why Austrian bankers care about Romania.”

The reason: the country’s banks are heavily exposed to Romania, an economy that is still in recession and has been since the start of the financial crisis.

The exposures are potentially massive, amounting to €30 billion, or 10% of Austria’s GDP, according to Ziarul Financiar.

Austrian banks like Volksbank and Raiffeisen will be seriously concerned about their exposures, and whether or not a potential slowdown in the broader European economy creates even more defaults on Romanian loans.

Here are the European countries you need to start watching NOW for sovereign debt problems >

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