Currently Hungary does not need the IMF, but next year, when it will have a high refinancing need, it will, Christoph Rosenberg, the IMF's head of mission in Hungary, was quoted as saying by French daily Le Monde.
And we've seen how brutally markets can sway, Rosenberg warned. According to the paper, strangely enough the Hungarian government's break-up with the IMF has not caused a panic among investors as the forint weakened only marginally, and the Hungarian government does not miss an opportunity to tell everyone who visits Hungary that the country has easy access to credit on the market.
But with a public debt nearing 80% of GDP, the highest among emerging markets, Hungary remains highly vulnerable, Rosenberg said. (BBJ)