IMF Stand-Off Hits Hungary Debt Sale |
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July 20, 2010
Hungary suffered its second debt auction failure in the space of two months on Tuesday as fears rose over the country’s commitment to economic reforms.
Hungary suffered its second debt auction failure in the space of two months on Tuesday as fears rose over the country’s commitment to economic reforms.
Investors boycotted an auction of short-term bills because of alarm over a dispute between Budapest and the International Monetary Fund, which led a €20bn ($25.8bn) financial bail-out of the country in November 2008.
Hungary is reluctant to give ground in a fiscal stand-off with the IMF and the European Union. Ahead of municipal elections in October, the ruling Fidesz party is desperate not to upset voters. The IMF and EU have warned Hungary its austerity measures look too short-term and insisted the government must rethink its plans.
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