05 January 2012

HUNGARY : Is Orban Humbled Enough By Forint Slide, Bond Rate Surge...To Change Controversial C.Bank Laws?


      It's taken a precipitous decline of Hungary's forint...and a steep increase on its bond yields... to 9.96%...to get government officials willing to discuss its controversial central bank law...
that had investors dumping bonds...and the EU backing away from providing a safety net loan.
     PM Viktor Orban has condemned meddling by outsiders and strings attached to any assistance.  
    He says the nation has enough reserves to meet debt rollover...for Q1.
    But Orban's game of 'chicken' with the EU over c.bank control...may be nearing an end.
    Hungary's resistance is even infecting the currency strength and credit standings of its strong neighbors...like Poland and Czech Republic.