REUTERS/ ANALYSIS/ Hungary's bond yields spiked while the euro slid to $1.1976, a four-year low against the USD, after a ruling party official said the country had only a slim chance of avoiding Greece's fate and the prime minister's spokesman said he supported this view. Only then did top government officials begin damage control, saying comparing it to Greece was"exaggerated" and insisting Hungary would continue trying to meet a deficit target of 3.8 %of GDP this year. "Very serious damage has been done to their image and it will take a very long time and a lot of 'hard data' to actually regain this credibility, not just with markets but more importantly FDI (foreign direct investment) investors" said Peter Attard Montalto of Nomura.Many analysts think the politicians made the comparison to Greece not because they thought a Greek-style crisis was likely, but for domestic political effect. (foto:
Economy Minister Gyorgy Matolcsy)
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