Monday, 21 November 2011

Now Hungary turns to the IMF for help

They are dropping like flies.With the markets anxiously watching what the New Spanish government will do to address its defecit,this morning it is the turn of Hungary which has asked the IMF and the EU for help.

According to Reuters, Prime Minister Viktor Orban's governmentwhich has pursued unconventional policies since it swept to power in April 2010, may face hard talks with lenders if it wants a deal without strict conditions attached, analysts have said.

The call appears an about face after it seemed Orban's government was quite capable of dealing with its own problems.

However the euro zone debt crisis, and Hungary's weak economic outlook coupled with the threat of a downgrade to "junk" debt status prompted the government to take this sudden U-turn.

Hungary was the first European Union country to receive an IMF-led bailout in 2008. The country had the highest public debt level among post-communist EU members at 81 percent of gross domestic product last year.

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