Hungarian portal origo.hu announced that the government is planning to apply discounts when it transfers municipal debt owed to banks to the central budget. The discounts will be as high as 25 percent, an announcement which resulted in the Hungarian bank OTP’s share price falling after two days of gains. The cice-president of ruling party FIDESZ told the Hungarian television that six banks will be summoned to renegotiate part of the debt taken on by the state. This decision is likely to affect the future agreement with IMF, which has regularly told Budapest to stop imposing erratic one-off tax measures and try structural reform instead.
