In this book, Iliana Zloch-Christy analyses the problems of Eastern Europe’s convertible currency external debt situation and its impact on the financing of East-West trade in the late 1980s and early 1990s. This is a continuation of Dr Zloch Christy’s Debt problems of Eastern Europe (1987) and is the first study of the present day complexities of East-West trade and finance. The author addresses four main issues. First, she examines the recent market-oriented reforms in Eastern Europe’s economic system and the changes that have taken place in East-West political relations. Dr Zloch-Christy then assesses whether convertible currency debt problems are an inherent part of the economic development of Eastern Europe, and if the problems are region-wide, and she discusses the strategies adopted to deal with them. She continues by exploring the extent to which the problems arising from indebtedness have affected the financing of East-West trade. Commercial and production compensation, various forms of credit and funding from international financial institutions are the main financial arrangements discussed. Finally, the author assesses medium- and long-term debt prospects both for Eastern Europe as a whole and for each country within the CMEA. East- West financial relations: current problems and future prospects is an important and highly topical study of the CMEA external balance and East-West trade and credit relations. It will be of interest to students and specialists of Soviet and East European studies, international finance and economics. It will also be an important reference work for government agencies and international financial institutions.