Hungary grabs world spotlight with IMF negotiations


Hungary is in the spotlight of the international financial media after the IMF and the EU suspended negotiations over the €20 billion loan package which was agreed in late 2008.

The Financial Times reports that the suspension came after the IMF told Hungary that 2011 deficit target should be lower than 3%.

“The rebuke to Hungary represents a warning to governments across Europe” said the Wall Street Journal. The paper cited Timoty Ash from the Royal Bank of Scotland saying that the strategy of the IMF is “potentially dangerous”.

According to the Bloomberg Businessweek the suspension in the talks is a blow to Viktor Orbán's efforts to rebuild investor confidence. “This is definitely negative for bonds and negative for the currency, both in speculative terms and in real flows,” Peter Attard Montalto, an economist with Nomura international Plc in London, said to Bloomberg Businessweek. “For an IMF statement, it’s pretty damning. This supranational cushion behind Hungary is actually far softer than people realize.




Business confidence falls slightly in June Analysis

Business confidence falls slightly in June

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors


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.