Traders expect Hungary to default

Note: This section contains information in English only.
Source: Forexfactory

Hungary saw surge in the borrowing costs as investors claim the country may be let to default by international authorities. Trader's sentiment was impacted by the fall of the Forint's value to all-times  low against the Euro, by drastic constitutional reforms that may put the IMF and the EU off providing new bailout package and by essentially discounted rights issue by UniCredit. Moreover, the country was forced to call off the bond swap and has to begin repaying $25.1bn bailout package to the IMF due in February.

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