As the European Bank for Reconstruction and Development (EBRD) releases its latest Transition Report, the focus is once again on finance. Debt levels in the region have continued to increase since the financial crisis, but this debt is not being used to support investment. Convergence of incomes and quality of life towards advanced economies is largely stagnant.
How might a stable and growth-friendly financial system in transition economies function? The EBRD suggests that the region must make greater use of equity instruments and develop stronger credit markets in local currencies. How can institutions within and outside the region support this financial rebalancing?
Bruegel was pleased to welcome EBRD Acting Chief Economist Hans Peter Lankes and EBRD Principal Economist Çağatay Bircan for a presentation of the data and policy proposals in the latest Transition Report. This was followed by a discussion chaired by Bruegel Senior Fellow Zsolt Darvas.