Junk Rating Stirs Anger in Hungary

„Since breaking with the IMF and EU, Hungary has enacted a series of temporary windfall taxes and taken other steps, such as the pension restructuring, as stop-gap measures in the expectation that economic growth would resume and limit the need for further action.

The steps are expected to result in a government budget surplus this year, one of the few in the EU. The government says it is on track to limit the deficit next year to below the EU limit of 3% of gross domestic product. The government said it will also cut public debt, which stood at 82% in September, the highest level in Central and Eastern Europe.

Hungary now also is staring at a likely slowdown next year, if not a return to recession, which will make it harder for the government to meet its goals. The Hungarian government is forecasting growth of 1.9% this year.

Hungary isn't in immediate danger of running out of funds. But next year, it will need to start rolling over €4.7 billion ($6.3 billion) in external debt as it begins repaying the loans it received under the 2008 bailout by the IMF and EU.”