Can the East Really Sink the European Union?
EU 'Has to' Go On
Quijano-Evans said it is unlikely the region will be allowed to get into deep trouble, and recent IMF aid packages for Hungary, Latvia and Romania lend weight to that theory.
Bulgaria may be next in applying for IMF cash and Poland may join a list of potential candidates for flexible credit lines designed for countries with better fundamentals, according to various reports.
"The EU, the IMF are not going to let this thing implode," Quijano-Evans said. "This is about the future of the EU project. There's no way they're going to throw the project overboard. The EU project is a peace project, this has to continue."
So far, Latvia has received loans from the EU, IMF and other financial institutions worth over 30 percent of its GDP, Hungary and Romania more than 15 percent of GDP.
No Sovereign Defaults
The floating currencies of the Czech Republic, Hungary, Poland and Romania have depreciated since the onset of the crisis, while countries with a fixed exchange rate such as the Baltics and Bulgaria suffered a sharp drop in growth. Latest forecasts put Latvia's economic drop at 13 percent this year.
Despite all this, they will not be allowed to default, some analysts say.
"Sovereign defaults? No, I don't see it. The EU and the IMF made it very clear in October when they moved into Hungary that they won't let this happen," Quijano-Evans said.
But for others, the only way to deal with Central and Eastern Europe is to let them learn painfully from their mistakes.
"What they do need to do is get competitive, and they need to get competitive in a hurry. And devaluation is the only way," Roger Nightingale, global economist at Pointon York, said.
"It's no solution to have somebody walk in and pay their debts for them, that'll just make them borrow even more in future."
"Teach them not to borrow this currency again, teach them not to try and link their currencies to the euro," he added.