Fitch currently puts BBB rating with negative outlook on Hungary’s sovereign debt, which is the second lowest “invest” grade. This measure can improve the short-term outlook on budget financing, he added.

Although Hungary has made substantial budget adjustment measures since 2006, even by global comparison, this is now being undermined by the government’s short-term and temporary measures, Heslam argued.

As steady expenses are financed by temporary tax hikes, the initial signs are not the best, Heslam added."

Source: Hungary Around the Clock

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