The Hungarian government has finally introduced a law that would revise its controversial law on the central bank, which helped lead to deep suspicion on international financial markets over the direction the country was taking. The move is being seen as a concession from Budapest that was necessary in order to make talks with the International Monetary Fund possible. Both the IMF and EU warned that failure to do so would fatally undermine confidence in the ability of Hungary’s central bank to act independently. International condemnation helped weaken the Hungarian forint and at the same time, drove up the government’s borrowing costs.
