Overnight, the IMF, the European Union, and the World Bank announced a joint 20.5 bn EUR (USD 25 bn) financial package for Hungary. Together with the recent 17 bn EUR FX reserves, this package is sufficient to cover EUR 33bn of external financial needs of the country over the next 12 months. HUF is up strongly since the announcement. The other Eastern European currencies are also stronger given that there is now a back-stop of support by global financial organizations. This deal was less intrusive than Iceland but then Iceland became an extreme.
No comments:
Post a Comment