Default insurance costs on Hungary’s sovereign debt reached a low for the new year in markets in London on Thursday as investors saw hope for a an agreement on financial assistance for the country from the International Monetary Fund and the European Union.

According to CMA DataVision, a major CDS market data monitor in London, Hungary’s five-year credit default swaps (CDS) traded a little over 620bp late Thursday, falling from 692.1bp late Tuesday and around 750bp in the first week of the year.

A CDS contract valued at 620bp means that the cost to insure every EUR 10m worth of bond exposure against default is EUR 620,000 a year for the benchmark five-year horizon.

Hungary is seeking financial assistance from the IMF and EU as a precautionary measure, intended to allow the country to continue to get financing on the market.