BIS Review 82/2006  1  If the deficit is financed through a stable and long-term arrangement and the funds are directed in effective real investment, a large current account deficit is an indication of the strength of the economy, rather than of its weakness. By and large, deficit financing in the new member states is quite reliable.
Arrangements such as internal financing in international corporations have already been experienced. Yet, the rate of indebtedness of some countries raises certain doubts.