International Monetary Fund (IMF) and EU-member delegation arrived in Budapest, Hungary on July 17, with Hungary in negotiations to provide financial assistance to Hungary. The talks scheduled to continue on the 25th of this month, the main content is still on Hungary to the IMF for 15 billion euros preventive loans.
 
Since the outbreak of the debt crisis in Europe, Poland and other new EU member states, the economy has maintained a relatively stable development, as a rare bright spot of the EU economy. Last year, however, the Hungarian economic situation continued to deteriorate, to the end of Hungary's public debt reached $ 186 billion, 85.1 percent of the gross domestic product (GDP) of countries with the highest public debt in the new EU member states.
 
2012, Hungary's economic situation has further deteriorated. Hungarian Forint exchange euro exchange rate fell more than 20%. As of November 13, Hungary 10-year bond yield to maturity rose to 7.85 percent. The three major international rating agencies to Hungary's bond credit rating to "junk". It is estimated that in 2012 Hungary's debt ratio will reach 87.6%, annual GDP will decline 1.5 percent.
 
Face of the deteriorating economic situation, the Hungarian government at the end of the IMF and the EU request for relief. But the IMF and the EU, Hungary originally nominated by the central bank governor deputy governor candidate to the presidential nomination by the Prime Minister to Hungary the central bank's independence pose a threat, so the interrupt financial assistance negotiations with the Hungarian Government. The EU also made it clear that if Hungary's government can not ensure that the Central Bank Act in line with the EU Charter, and will not restart the relevant negotiations. July 6, the Hungarian Parliament passed the amendment to the Law of the Central Bank to meet the requirements of the IMF and the European Union relating to the protection of the ECB's independence. The loan negotiations to restart.
 
At present, the outcome of the negotiations between the IMF and the European Union and the Hungarian government is not yet known, but it is certain that the former will not easily change a tough stance on the loans, especially in the case of the EU economy is still not improved, be on guard against a new flashpoint in EU member states, in order to avoid creating new impact on the EU economy and destruction.
 
Hungary is not a euro-zone countries, GDP volume accounted for less than 1% of the total EU economy, but the EU and the IMF Hungary's harsh attitude is definitely not making a fuss, because the economic problems if allowed Hungary to further fermentation, it may lead to the whole of Europe a chain reaction of the financial system. Once the Hungarian debt default, bound to have to have a large number of Hungarian assets Austrian and Italian banks dealt a serious blow, and then the further spread of the euro zone sovereign debt crisis, is, undoubtedly, will allow EU countries economy to worsen.



Other News:
The IMF and the EU began negotiations with the Hungarian Financial assistance
Policy to stimulate the early results returning to Steel City, profit good boost
Syrian State Security headquarters was attacked defense minister was killed
Public agencies to see the City: Policy fermentation steel market rebound
Steel City, a poor environment steel prices forced the steel and then cut
EU proposes to establish economic partnership with Japan
Fed's Beige Book: Economic moderate to solid growth
Greek leaders intend next week to finalize the $ 14.7 billion less support plan