Thursday, June 3, 2010

Is Hungary the next Greece?? $GREECE

Today, the Hungarian markets came under pressure after Lajos Kosa, Deputy Head of the ruling Fidesz party compared the situation in Hungary with Greece and said the economy was in a much worse state than expected. Adding to the negative sentiment were negative comments regarding the budget situation from Prime Minister Orban and State Secretary, Mihaly Varga. Varga said that he expected a budget deficit 7-7½% of GDP in 2010. Overall, Hungarian newsflow is quite concerning and even if the negative rhetoric is 'just politics' we advise that more bad news might well be in the pipeline. The comparison with Greece might be 'overdone', but one can hardly say that public finances are in good shape in Hungary


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