BBC NEWS | Business
"EU hopefuls 'risk euro loan woes'
Euro notes
The ECB warns that the countries are putting their economics at risk
The growth of euro and dollar loans in nations aiming to join the European Union could spark local financial crises, a report has warned.
The European Central Bank said foreign currency borrowing was now widespread among firms and households in Romania, Bulgaria, Croatia and Turkey.
Yet it warned the practice, which allows them to gain a lower interest rate, represented a long-term risk.
Any sharp fall in the local currencies would make the loans much more costly."
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