it is unlikely that Hungary will lose much EU money
According to S&P Global, the Hungarian BBB debt rating can withstand the intended EU funds. Niklas Steinert, the Hungary analyst of the American credit rating agency, told Reuters about this on Thursday evening.
There is very little chance of a huge and comprehensive regulation of EU funds
– said Steinert to the news agency, who believes that a smaller, targeted reduction of resources on the part of Brussels is much more likely, which Hungary’s current credit rating can still handle.
S&P placed it in its last regular review in August negative outlook our country is recommended for investment, with a BBB credit rating. The credit rating agency justified the deteriorating prospects for the limiting risk of EU funding, as well as the economic challenges and recruitment costs, to make it difficult to reduce our country’s debt level.
However, according to Steinert, they do not currently expect a dramatic downward spiral in terms of credit ratings.
Although the recession seems inevitable, according to the analyst, one of the main concerns of S&P is the runaway energy costs, the pressure has eased somewhat with the new Russian gas delivery contract concluded in August.
Another relief is that due to the weakening of the forint, which broke negative records, there is no question as to who the central bank’s foreign currency reserves are, the MNB still has four billion euros of available repo reserves at the European Central Bank. There are signs that Budapest is still trying to reduce its debt stock.
Fiscal consolidation has already begun, the question is whether it will be able to maintain this next year as well
– pointed out Steiner.
Regarding the ongoing negotiations on key EU resources, he added: “things have already developed according to our expectations, we already thought that the picture would be clearer by now”.
With the appearance of the energy crisis, efficient and low-consumption machines are becoming more and more important, but Gábor Szabó, the head of GF Machining Solutions responsible for the Hungarian and Romanian markets, has found that domestic companies are currently struggling with a lack of funds without European Union subsidies and are waiting for investment. |