Hungarian urgent off Eastern Europe debt storm

Came 16 days on December 13th, the International Monetary Fund ( IMF ) Hungarian affairs Rosenberg will travel to Budapest, and the Hungarian government and the European Commission Hungarian budget policy issues for future negotiations, assistance to prepare. A week ago, the Hungarian national development minister Bill Leckie designated for talks with IMF financial assistance, in order to be able to focus on negotiation, cost Leckie also therefore resigned from the post of minister.

In view of the difficult situation be beset with troubles internally and externally, the government also recently decided to delay the implementation of debt reduction budget austerity policy. Originally scheduled to take effect in January 1, 2012 of the new Hungarian Constitution: total debt to GDP ( GDP ) weight not exceeding 50%. According to this new regulation, after several years of efforts, the Hungarian public debt in 2014 will be close to 60% of GDP. Now, the new rules will be postponed to 2016 since the implementation of. The latest data shows the current Hungarian public debt has reached 82% of GDP, greatly exceeding the prescribed 60% caps. December 11th Orban speaking Hungarian budget for next year when indicated, it is necessary to have passed the budget changes.

Rating agencies downgrade warnings have the euro zone again jittery, Eastern European debt concerns gradually surfaced. From 13 to 16, the International Monetary Fund ( IMF ) represents the will to Hungary to discuss the future salvage matters, the Eastern European debt crisis gradually conspicuous. The analysis points out, once the Hungarian identified for help, the market for the European debt crisis diffusion and European integration process is hampered by the concerned material to further enhance, makes the already fragile market sentiment once again.

According to the report, the IMF Hungarian affairs for Rosenberg in the next 3 days before the Hungarian and the officials consultations, negotiations for the next year in January may be of assistance in preparing. Hungary had last month forced to IMF for help, hoping to get 100 to 15000000000 euro bailout loans.

The 2008 global financial crisis, the Hungarian financing difficulties, the government had asked IMF aid application and finally got the support of 20000000000 euro, became the first to obtain relief of EU member states. However, affected by the European debt crisis, the Hungarian economy always has improvement hard, international rating agency Moodie at the end of 11 the Hungarian long-term sovereign credit rating from Baa3 downregulate the level to Ba1 junk, and maintained its outlook to negative.

At present, public opinion thinks generally, Hungarian or will become the Eastern Europe first debt situation severe deterioration of the country. Although the Hungarian not eurozone countries, which to a certain extent mitigate the crisis pressure, but the Hungarian crisis remains the European debt crisis and the crisis of the refraction, expansion and even" blossom in the round" concerns will also be damaged and European integration confidence, further depressing the risk preferences of investors sentiment.

Last week have been reported some European Central Bank has begun to consider emergency plan, for members to leave the euro zone even in the euro area completely disintegrated preparation, including consideration of reactivated their currencies, currency exchange rate target and the euro to unhook, damage to the outside world for the euro zone 's confidence.

" Hungary is a ' siren '." Capital economics economist last month in an interview made such statements, alluding to the eastern regions of the risk is still worth investors wary.

By the European Union summit and international rating agency again mouthing the euro zone rating to suppress bad, Euro overnight defeat across the board. As of now, the euro against the dollar minimum hit 1.3161 for six weeks of low. The analysis points out, lost key support position, means that the euro against the dollar may have been open to further decline in the space.

Internationally renowned institutions have sing empty euro. Morgan Stanley predicted, the euro against the dollar in November 1.3213 after breaking under low, short target will further points toward the October low of 1.3148; Bank of America Merrill Lynch also bearish on the euro, believe that the euro against the dollar next key support is at 1.3146, fell throws down sharply, target 1.2510.

In addition to the European debt crisis, early Wednesday morning, the Federal Reserve will hold last year monetary policy meeting, Bernanke's argument on the United States economy policy and prospects will also be about foreign exchange market sentiment, investors need to focus on.