Viktor Orban, Hungary's prime minister, last month unveiled a significant austerity package Photo: Reuters Markets Braced For Turmoil After IMF And EU Withdraw £17bn Hungary Financing Deal -- The Telegraph
European equity and credit markets are braced for a volatile day of trading after the International Monetary Fund (IMF) and the European Union dramatically withdrew a €20bn (£17bn) financing deal for Hungary over the weekend.
The move, which was described by economists as “very rare”, means that Hungary will not have access to standby funds that were secured as part of a 2008 loan deal. The credit line was suspended on Saturday after the European Commission voiced concerns over the newly-elected Hungarian government’s budget plans.
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My Comment: A part of me is happy to be out of the equity markets and living in little old Canada. Another part of me (unfortunately) realizes that because of how interconnected the world is .... a sneeze in Europe can result in pneumonia for the rest of the world.
Sighh .... expect a rough day for Europe in the markets tomorrow.
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