Russia central to E.Europe growth

The European Bank for Reconstruction and Development has warned that growth in former Soviet countries will depend, in part, on continued economic reforms in Russia.

In a report, the Bank said the new government in Moscow should take the opportunity to encourage more investment and reform business practices.

Otherwise, it said, there would be increased risks of inflation.

The Bank, which funds development projects in former Communist countries, said annual economic growth among the countries was at its best since communism collapsed, averaging two-point-four percent. It said the region was recovering from the effects of the Kosovo conflict, and Hungary, Poland and Slovenia had performed particularly strongly.

From the newsroom of the BBC World Service