Will Hungary Be Next European Country To face Greek-style debt crisis
After the warning of Prime Minister of Hungary, Viktor Orban, that his country’s economy was in a “grave situation”, in part because his predecessors in government had “lied” about the state of public finances.He added that country had only a slim chance of avoiding a Greek-style debt crisis.This statement resulted in dowsliding of currency and markets worldwide.Investors and traders are worried that Hungary could become the next European nation to suffer a fiscal crisis and as U.S. May job data came in below expectations.
Though there will be a report coming from Hungary’s government on the state of the economy and budget at 0830 GMT on Saturday(today), after its highly confusing comments on public finances.While it should be noted that Hungary has already been bailed out 2 years ago at the time of credit crisis, borrowing $25bn from the International Monetary Fund(IMF) and the EU.
Canadian bonds ended higher Friday, as a lackluster report on employment in the U.S. and worries about economic troubles in Hungary and Europe sent investors scrambling for the safety of fixed-income assets.