In the following paper I analysed the development of the refinancing costs of the central european countries after the financial crisis of Greece. The financial status of most of the CEE countries is better than the average of the members of the EU and the Eurozone. Even though Hungary is suffering from a financial crisis, it still manages to achieve the average of the members of the EU. During 2010 we see an improvement of the financial status of most of the CEE countries, while EU members like Spain, Greece, Portugal and Ireland had to suffer from increasing refinancing costs. The consolidation of the national budget will be easier in the CEE countries due to lower debt, the positive economic outlook and the absence of powerful unions. Due to the financial crises of Portugal, Ireland,Greece and Spain (PIGS) superfluous liquidity went out of these bonds and went into safe bonds like Germany, where the nominal interest rates declined. Most of the CEE countries were able to benefit from this development too. Their refinancing costs declined. The correlation proves this. Refinancing conditions will be further upgraded by entry into the EMU if the CEE countries still desire this membership in view of the change of the EMU from a monetary to a transfer union.
See slides: Refinancing CEE Countries
The refinancing cost of the CEE countries has not increased due to the financial crisis in Greece. The contrary is true as a result of the high liquidity and positive financial status of most of the countries. The stability of the Euro and a potential membership of the C.E.E. counties in the EMU, we saw that these countries would not be a problem for the Euro, but rather the membership of the PIGS countries.