REUTERS/ The IMF abruptly ended two weeks of talks with PM Viktor Orban over disagreements about plans to control budget deficits. At stake is $20 billion euros. “This is definitely negative for bonds and negative for the currency, both in speculative terms and in real flows,” said Nomura economist Peter Attard Montalto. “For an IMF statement, it’s pretty damning." Investors sold off the currency, the forint, to a 14-month low, while bond costs soared. The governments of Romania and Latvia may be challenged next.
(V.Orban foto)
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