Now everything is in place for the government to announce credible plans and macroeconomic targets, the broker added.

An announcement of measures is expected in the next one or two weeks, but structural reform elements will be key because the budget cannot be settled by one-off measures every year, Németh underlined.

The premium on Hungarian CDS instruments fell from 312 basis points to 301 basis points on Monday.

As it is unlikely that the government will restart negotiations with the IMF after Sunday’s elections, the market is focusing on government rhetoric and details of budget plans, Hungarian news agency MTI wrote in summary of the reports of London-based investment banks and analysts."

Source: Hungary Around the Clock.

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