The Hungarian forint jumped in value as analysts dug into the details of a new proposal from the country’s Economic Ministry that would reduce the national deficit by nearly HUF 400bn. Along with a strengthening to just HUF 281 per Euro, the price of credit default swaps on five-year debt dropped to just 358 bps, the lowest figure recorded in 2012. This will make the cost of borrowing money cheaper, which is of particular importance to the government, which needs to come up with a viable strategy for financing its existing budget deficit.
