Coface expects austerity measures to boost credit risk in Hungary
The Hungarian unit of French credit insurance company Coface expects credit risk in Hungary to increase in 2007 as a result of the government's austerity measures. The measures will increase Hungary's already high rate of insolvency, Coface said.
Coface expects the construction sector to contract in 2007, which will not help its insolvency rate of 4.17%, Hungary's highest. Coface also expects the insolvency rate in the retail trade sector to increase from the current 2.59% because of a fall in household income. In addition to slowing GDP growth, Hungarian companies will also face a drop in public sector orders. The depression could last for two or three years, Coface said.
In its global outlook, Coface expects oil prices to stabilize and feedstock prices to increase at a slower rate in 2007.
ADVERTISEMENT
Minister Asks Banks to Introduce Voluntary Rate Caps
Gov't Raises 2023 Deficit Target to 5.2%Â of GDP
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.
