Under what conditions did Hungary take out a loan from abroad?
2022. 06. 10. 03:00
Dollar and euro yields of around 10 years were around 5.8 and 4.5 percent, respectively, representing a significant premium over U.S. and European benchmark yields.
the yield on dollar-denominated bonds shows that we are in the same category as Brazil, and we do not even reach the example of Mexico.
A word like a hundred, not the strength of the European Union, is reflected in our yield spreads. Obviously, the fact that the disbursement of EU money is still there is uncertainty, and we will certainly go ahead with the budget plans as if there were no problem.
Meanwhile, it is slipping apart in the economy. We are facing record foreign trade deficits and crazy inflation. This, of course, deepens the forint’s exchange rate, which again has only a negative effect on imported inflation, as does the need to raise interest rates.
The strange situation is that the government continues to stimulate the economy with state subsidies, that the national bank always has to push for inflation, in which it has become a little more cautious recently. Meanwhile, the car seems to be slipping off the track. This suggests that this will not end well.