30 December 2011

HUNGARY: PM Orban Claims "We Will Stand On Our Own Feet"...After Parliament Passes C.Bank Restrictions.


      The 'junk' bond status of Hungarian sovereign debt...probably just got junkier...after its lawmakers voted to enact tough new restrictions on the central bank...that the EU and IMF oppose.
     The parliament will strip central bank President Andras Simor of his right to name deputies and expanded the rate-setting Monetary Council...along with several other recent restrictions.
     The IMF and EU have broken-off all loan talks.
    “The government is floating the possibility of an IMF deal but in reality it’s playing for time, hoping the global economy will improve and make a bailout unnecessary," said a local money manager.
    “If we have an IMF safety net, then we face the coming period with greater self-confidence and greater security,” said PM Viktor Orban “If we don’t reach an agreement, we’ll still stand on our own feet.”