Hungary may lose Ft 1.62 trn as political unrest damages economy
„The strategic investors that are already here are waiting on the sidelines to see if this insecurity will end within days or weeks,” he said. „This is about whether these companies will reinvest their profit generated in Hungary or if they will chose to take it to other countries.” While bond and currency investors are unlikely to sell their holdings, the increased instability may force the central bank to further raise its benchmark interest to keep Hungarian assets attractive, according to Kóka. The country's main interest rate is already the EU's highest at 7.75%. „It can cost the majority of the savings from the austerity measures if the destabilization has to be offset with rate increases,” he said. Regardless of the events, Kóka reiterated that the government will carry out the budget plan as approved by the European Union. (Bloomberg)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.