ABSTRACT
In comparison to normal international trade relations, the east-west trade and financial relations are of a different nature which is due to the planned economic system in the Comecon and the Comecon's specific foreign trade policies. The banking system is not only nationalized but also very concentrated in respect to the financing of international trade. The western financial system, therefore, had not only financed the trade deficit of the trade of the Comecon countries with the Organization for Economic Co-operation and Development but also its trade deficit with other countries. In order to maintain a smooth rolling over at all times, the creditworthiness of Comecon countries has to be acceptable to the western financial institutions at all times. The creditworthiness of a country depends on its credit standing. As the creditors of the Comecon are all government-owned institutions or even the governments themselves, the credit risk in the Comecon is synonymous with what one calls the country risk.
