June 4, 2010
An official for Prime Minister, Viktor Orban said the “D” word when talking about their debt and the economy as the budget deficit may increase after the previous government is accused of manipulating figures on the state of the economy according the Bloomberg.
Hungary’s economy is in a “very grave situation,” a government official said, adding to concern about Europe’s sovereign debt crisis, hurting U.S. stock futures and sending the forint to a 12-month low.
“It’s clear that the economy is in a very grave situation,” Peter Szijjarto, spokesman for Prime Minister Viktor Orban, said today in Budapest. “I don’t think it’s an exaggeration at all to talk about a default.”
In response, Hungary’s currency, the Forint dropped 1.4 percent to 286.08 per euro. According to Bloomberg data, Hungary’s 2-Year bonds are currently at 6.07 percent, a surge of 30 basis points from yesterday and a 72 basis point increase from last Friday.
The Euro is down close to a percent to 1.2044, breaking the previous recent low of 1.2111.
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Rom_Badilla
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mikechuang
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