Hungary needs financial assistance

22.11.2011 Recently Hungary asked the EU and IMF for help. The country continues to suffer from the negative impact of the crisis. The popular rating agencies (for example, Standard & Poor's) gave a low credit rating of Hungary and predicted its further decline.
Specialists made a comprehensive analysis of statistics and summed up that the state national currency (forint) fell significantly in comparison to other national currencies of European countries from the beginning of the second half of 2011. Also disappointing picture is in the sphere of Hungary state debt: in September it rose to 82% of GDP, while the summer figure ranged at 75%.

Expert’s opinion

“Hungary like many other European countries is now in a difficult financial situation. Budget deficit and in geometrical progression growing national debt are the typical indicators of the country during the crisis. Let’s recall that Hungary has already received financial assistance from the EU in the crisis of 2008. But it did not help the state to organize the work of the internal mechanisms. That time the country was obliged to make reforms, but they didn’t have the result. Perhaps this time assistance that may be provided by the EU and IMF is needed to put in the hard conditions under which the obligation to hold reforms of the necessary structures will be strictly under the control of bodies and officials of the EU and IMF”.

On the basis: www.rbk.ru

Vorontsova Maria ( the lawyer of international consulting department of Honest&Bright)