Hungarian markets are braced for a fall today after financial talks between the government and an International Monetary Fund/European Union delegation broke down acrimoniously on Saturday.
A regular budgetary review, held under the terms of a $25bn loan programme, ended in disarray with the visiting team insisting Budapest had to rethink its proposals. While Hungary has no immediate need for IMF/EU funds, the negotiations’ collapse leaves the country vulnerable to market pressures and raises fears of contagion in other shaky European economies – including in the eurozone.
As Peter Attard Montalto of Nomura Securities, writes in a note: “This is important news for both EM (emerging markets) and also developed markets and risk.”
Stefan Wagstyl
Josh Noble
Rob Minto
Pan Kwan Yuk
Jonathan Wheatley
Heba Saleh