Assessing the Sustainability of Credit Growth: The case of Central and Eastern European Countries

Assessing the Sustainability of Credit Growth: The case of Central and Eastern European Countries

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Credit growth rates as high as 30% or 50% a year were observed in some Central Eastern European countries (CEECs) in 2006-2007, such as the Baltic States, Bulgaria or Romania.This strong credit growth THINNING HAIR SHAMPOO could have been due to the catching-up process but could also have been excessive, paving the way to the credit crunch that followed the crisis in 2008-2009.We try to assess the excessiveness of credit by applying a number of methods.

First, we consider the gap between current credit and its long-term trend and we find some signs of credit booms, in several CEECs in 2005-2007.Second, we assess the "normal" growth of credit with regard to SPROUT PROTEIN CHOC fundamentals through econometric estimations.Credit growth is also shown to have been excessive in several countries just before the 2008-2009 financial crisis.