1- In the country focus on the Greek debt crisis, the European Union, and the IMF, we came to appreciate the anatomy of the Greek crisis and its role in the global financial crisis. How dose Hungary differ from Greece in its response in the financial crisis?
Hungary's government financial policies gave it a certain level of flexibility that Greece does not enjoy.
Hungary has the option of not necessarily accepting a loan while Greece has been forced into a bailout with the help of the European Union and the IMF.
Hungary has decided not to draw any further on the loan and has decided to finance itself from the international bond market after receiving an emergency loan package in 2008. This loan helped the country avert insolvency.
In so doing, Hungary has taken on its own fate without an externally imposed austerity program. In a contrarian posture, the Orban government has favored growth policies over austerity and refused to assume the obligations to reduce its budget deficit to 3 percent of GDP, as mandated by EU and IMF agreements.
2- Do u think now that the European union has assisted lesser-developed countries such as Greece, that it will look at countries such as Hungary under a different set of principles prior to admittance in the euro zone?
European Union would start new set of principles prior to admittance to euro zone to avoid more financial instabilities in the euro zone and to keep the euro's value in global markets and preserve the economic and monetary union.
The EU would force counties into strengthening their banking system in an attempt to avoid a Greek-style bankruptcy in the future.
3- What do u think lies ahead for the forint?
Since that the forint is the world’s best performing emerging currency they shouldn’t be worried, but there is the issue of the local bond market which has benefited from the easing expectations. Hungarian yields have fallen more than 200 basis points in a year and foreign ownership levels...