S&P “concerned” about Hungary’s economic policy – wire

Ratings agency Standard and Poor’s is “concerned” about the economic policies of Hungary’s government, a senior director told Bloomberg on Tuesday.

A government plan announced on Monday to allow Hungarians with foreign currency-denominated mortgages to repay their loans early at an exchange rate fixed well under market rates, while banks shoulder the costs, has “downside risks” that may hurt lending, growth and public finances, Frank Gill told Bloomberg.

Hungary’s economy may grow 1.4% in 2012, Gill said, less than the government’s 2% forecast.

“We have to take a view on the predictability of government policies to support sustainable growth performance, which is essential to anchor public finances,” Gill said. “We remain concerned and we have a negative outlook,” he added.

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