Thailand Business News
Thailand Business News

Fitch downgrades Hungary to junk status

Must read

12 Things you should Know about ASEAN Economic Community

By 2015, ten countries in Southeast Asia plan to launch a single market for goods, services, capital and labor, which has the potential to...

Deputy Transport Minister at PIPO center in Narathiwat

NARATHIWAT (NNT) - The Deputy Minister of Transport has ordered the Port-In Port-Out...

Outstanding inventions displayed at Thailand Inventors Day 2020

BANGKOK(NNT) - February 2nd marks Thailand Inventors’ Day on which the National Research...

Thailand to implement measures to mitigate effects of coronavirus

BANGKOK (NNT) – The Cabinet has approved the Ministry of Finance’s proposal to introduce monetary and tax-related assistance policies to mitigate the side effects...

Budapest: Fitch Ratings downgraded Hungary’s credit grade to junk status on Friday, citing a standoff between the country and the European Union and the International Monetary Fund over rescue loans. Fitch, which followed similar moves from Moody’s and S&P, kept a negative outlook, indicating a more than a 50 per cent chance for another downgrade within the next two years.

The decision to cut Hungary by one notch, to BB+ from BBB-, was triggered partly “by further unorthodox economic policies which are undermining investor confidence and complicating the agreement of a new IMF-EU deal,” said Matteo Napolitano, Director in Fitch’s Sovereign Group. Hungary’s currency, the forint, fell to all-time lows during two consecutive days this week. Hungary late last year requested financial aid from the EU and the IMF.

But the two institutions broke off preliminary negotiations amid concerns over new laws they fear could hurt the independence of Hungary’s central bank. Government spokesman Andras Giro-Szasz said the downgrade was “surprising” considering statements from Prime Minister Viktor Orban and Tamas Fellegi, Hungary’s chief negotiator in the IMF-EU talks, confirming the country’s intention to soon reach an agreement with the international creditors and the government’s insistence about its support for the independence of the central bank.

Today morning, Orban met with National Bank of Hungary President Andras Simor and the government’s top economic officials.

Orban dismissed market speculation that the government was planning to tap central bank reserves to support the state budget and said the government would do everything in its power to support the central bank’s efforts to stabilise the economy. Hungary’s currency, the forint, fell to all-time lows during two consecutive days this week.

Yields on some government bonds jumped more than 2 percentage points in just a few weeks, as investors fretted about the uncertainty over the IMF deal and the government’s economic policies.

Fitch downgrades Hungary to junk status

More articles

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest article

Tourist arrivals plunge 43% on Chinese travel drought – Tourism

Tourist numbers from February 1-9 were down 43.4 per cent, said Tourism and Sports Minister Phiphat Ratchakitprakarn, and among Chinese visitors 86.5 per cent....

Thailand considers CPTPP membership

BANGKOK (NNT) - The International Economic Policy Committee has held a meeting chaired...

Thai banks slash growth forecast around 2%

Several major Thai banks have drastically reduced their GDP growth forecast for 2020 citing the coronavirus epidemic, drought and fiscal delays. The coronavirus epidemic, the...

New Thai-Chinese Chamber of Commerce head outlines policies

BANGKOK (NNT) - The new President of the Thai-Chinese Chamber of Commerce, Narongsak...

Charming Phrae showcases Thai history and culture from a bygone era

For those curious what life in Thailand was like several generations ago need to look no further than Phrae. It is a historical and cultural time...