Seeking Alpha
Profile| Send Message|
( followers)  

Well this one came out of the blue. Looks like Hungary pulled a Greece in its statistics department. Hmm, governments worldwide fudging the numbers to create an alternate sense of reality? Whodda thunk!

Via Bloomberg:

  • Hungary’s in a “grave situation” because the previous government “manipulated” figures and “lied” about the state of the economy, said Peter Szijjarto, spokesman for Prime Minister Viktor Orban. The forint fell for a second day, dropping as much as 2.1% against the euro.
  • A fact-finding panel will probably present preliminary figures on the state of the economy this weekend, Szijjarto said today at a news conference in Budapest. The government will publish an action plan within 72 hours after the committee reports its findings, he said.
  • “It’s clear that the economy is in a very grave situation,” Szijjarto said. “We need a clean slate to formulate our economic action plan, and the fact-finding committee will provide just that.”
  • “It’s no exaggeration” to talk about a default, Szijjarto said today.
  • Hungary needed a 20 billion-euro ($24 billion) international bailout to avert a default in 2008. Orban, who took over May 29 after winning elections by pledging to cut taxes and stimulate the economy, yesterday failed to get European Union approval for looser fiscal policy.
  • “Investors are losing their patience,” Gyorgy Barta, a Budapest-based economist at Intesa Sanpaolo SpA, said in a phone interview. “This is part of a communications strategy that wants to tell voters one thing and the markets another. It’s getting too complicated, and the government now needs to come clean and present a convincing plan of fiscal consolidation.”

Oh well, nothing a hundred or two billion euro won't fix. Get to work US taxpayer... err, IMF.

Original article

Source: Hungary: Europe's Latest Bailout Target