Thanks to private sector’s external debt deleveraging and high current account surpluses since 2010, net external debt is rapidly falling. This is a clear positive trend for the rating,” Fitch told Reuters.

“The recent agreement with the EBRD to bring the banking sector regulation in line with international best practice is a good signal. But we would like to see more tangible evidence of improved/more stable business environment in practice,” Fitch said.

“We believe Hungary will be able to maintain deficit below 3% of GDP in the medium term. However, this might not be enough to ensure a sustained fall in the level of government debt as a percentage of GDP,” Fitch told Reuters.

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