Financial markets in the region have been rocked by the recent sharp downturn in global risk appetite. Equities have plunged by up to 50% in the past month, while spreads on CDS have ballooned. Governments across the region have responded with a plethora of measures to shore up investor confidence and protect bank deposits. But while full-scale meltdown in the West looks to have been averted, those countries with large current account deficits in Emerging Europe have yet to feel the full effect of the credit crunch. Hungary and Ukraine have approached the IMF for assistance, but others – notably in the Baltics and Balkans – could soon follow.