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Thursday, January 26, 2012
Spending Christmas with my family is a great deal for me. I watched Duna TV every day, and enjoyed the snow falling. I missed snow for 21 years now. On TV I have seen a lot of people on foodstamps, and lack of future, a dissillusioned youth, frightened by the lack of work places. Meanwhile: Flag of Hungary Budapest, Hungary Thursday, January 19, 2012 Lovely place. But politicians are dirty-handed. The forint slides every day, though. Hungary is testing investors' nerves to breaking point as the government struggles to square its economic policies with financial reality. The forint on Thursday morning touched a record low against the euro of Ft324 after domestic yields in Budapest hit crisis levels. The government had to pay 9.96 per cent in a bond swap auction for one-year paper while the yield on 10-year bonds rose to 11.34 per cent. Moreover, It was enough to force Viktor Orbán, the prime minister, into action – and start a retreat from his reluctance to ask the International Monetary Fund and the European Union for aid Hungarian Parliament Hungarian Parliament . At a hurriedly arranged press conference, Tamas Fellegi, the chief negotiator, pledged to seek a fast agreement with international lenders saying the government wanted to strike a funding deal "as soon as possible". Mr Fellegi explained Hungary would be prepared to sign a precautionary standby agreement with the Fund. Separately, János Martonyi, foreign minister, told the FT in an interview: “We are ready to negotiate about anything and everything. There are no preconditions on our side. Budapest’s markets recovered slightly on the news. The forint ended at Ft319.7 to the euro, flat on the day and bond prices firmed. But Hungary’s fight with the markets is not over. Mr Orbán has simply won a bit of breathing space. With the currency down about 20 per cent since last summer, and foreign exchange debts looming large over the government and over private borrowers, the risks of a debt-driven financial meltdown remain at critical levels. Benoit Anne, a strategist at Société Générale, says: “Hungary is the most vulnerable country in the emerging markets universe at this point.” Timothy Ash, head of emerging market research at RBS, said in a note: “Hungary will eventually conclude a new IMF arrangement this year – the only question is does it happen before-after a period of more aggressive market dislocation?” Will he comply with EU demands?" Olga Lazin from Budapest. Read more:

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