Emerging markets face danger of 'systemic crisis'

Emerging market economies face a "material and rising" risk of systemic crisis as a result of the global recession, the steep decline in commodity prices and the reluctance of western banks to extend loans, according to a research report from credit agency Fitch Ratings.

Fitch said: "Central and eastern Europe are especially at risk given the large current account deficits fuelled by rapid bank credit growth."

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