Central and Eastern European markets have been the strongest performers in the past six months as the concerns of investors switch to the mounting debts of the developed world.

These markets have been buoyed by the determination of governments in the region to straighten out public finances, even as some draw on the support of the International Monetary Fund.

In contrast to Euro-zone members, such as Greece, which saw a collapse in its bond markets last week, investors have been impressed by the performance of the region's stronger economies, such as Poland, as well as those that have been assisted by the IMF, such as Hungary and Latvia.

The cost to protect government debt against default has also fallen sharply in countries such as Poland and Hungary, contrasting with steep rises in developed world nations, such as Greece and Portugal, over the same period.

In currency markets, the Polish zloty, one of the most liquid currencies in Eastern Europe, has risen 10 per cent against the euro in the past six months. More information