and the European Union apply for "preventive" financial assistance

Hungary rating downgraded to sign, the debt crisis is "eastward" trend, Hungary, Latvia and other small economies have a crisis to take shape. Many countries in Central and Eastern Europe and the eurozone close trade ties, and Western European banks control most of Eastern Europe, local banks, which were hit by credit crunch through the banking system from the eastern part of the peripheral countries toGuide. 　　Development to this debt crisis is already showing "full bloom". Press Conference on November 24, one of the three major international rating agency Moody's Investors Service announced Hungary's credit rating to Ba1 from Baa3 per cent level and maintain prospect as a negative, it is the country's first loss in 15 years investment levels. The same day, Fitch will be Portugal's sovereigntyRating to junk status. Recent development on European debt crisis, 25th, and the State Council Development Research Center of reporter lines Sun Yongxiang, a researcher at the Institute of Euro-Asian social development view, Hungary rating downgraded to sign, the debt crisis is "eastward" trend, Hungary, Latvia and other small economies have a crisis to take shape. Many countries in Central and Eastern Europe and the eurozone tightKey trade links, and Western European banks control most of Eastern Europe, local banks, which were hit by credit crunch through the banking system from the eastern part of the peripheral countries to transfer. He warned that if the crisis further aggravated, inevitably accompanied by a lot of money withdrawal, Central and Eastern European banking credit supply chain will face fracture risk at any time. This situation occurs, including HungaryCentral and Eastern European countries, probably doomed. On Monday, bowing to financial pressures the old republic power leveling, Hungary formally to the International Monetary Fund (IMF) and the European Union apply for "preventive" financial assistance, the country became the first European debt crisis after the application for international assistance to the countries of Eastern Europe. However, what's regrettable is, no SOS issued two days, Hungary ratingThey were brutally reduced. Global Chief of Renaissance Capital analyst Oscar Robertson commented: "a lot of people think this can help avoid a downgrade, but it was too late. "Moody's said a statement on the day, Hungary Government's ability to complete fiscal consolidation and reduction of public debt, uncertainty about the medium-term objectives, at the same time, serious external debt burden increased, economic dependency, coupled with the giantBig financing needs for the country's capacity to resist risks, it is easy to shock from the incident. Moody's believes that these factors will negatively impact on the Government's financial position, and erosion to the ability to fight crisis. The Agency also warned that if Hungary in structural reforms and lack of substantive progress in the implementation of the medium-term plan, did not rule out further down the country assessmentPossibility of level. Sun Yongxiang believed that debt of any changes will be immediately reflected in the exchange-rate pressures and funding costs. In fact, before the Moody's downgrade, have been three major rating agencies to reduce the country's rating Outlook to negative. But is different from the other two, Fitch Ratings in the 12th before taking that decision, has not sent work teams to Hungary"Field research", it is rather surprising. Similar to the Moody's statement, Fitch Ratings considers Hungary than expected economic downturn situation even worse, there are signs of private sector capital outflow, which would further weaken the Government's ability to consolidate financial and threatened sovereign credit ratings. Rating agency "press step by step", the Hungary sovereign rating was named junk, greatly increasing the possibility, Follow the currency devaluation and rising government bond yields. Hungary forint last Monday after hitting a record low against the dollar can't always improve. Meanwhile, the country's 24th auction of HUF 30 billion of the 1-year government bond hit a record high of 6.79% at the previous continued to rise, cordon breakthrough 7% per cent high.10-year government bond yields as high as 8.95%. In this regard, he pointed out that the local currency devaluation and bond yields rising superposition effect actually exists. At present it is very worrying that, most of the country's debt is denominated in foreign currencies, which means that if devaluation, will make the repayment costs become very expensive, coupled with the rating downgrade brings higher yields, the blockbuster bombAs reflected in the power of. However, in the face of international pressure on the rating agencies frequently, Hungary Matocci economic Minister retorted in a statement released on Friday: "Moody on Hungary's assessment of the situation are unfounded, so can only say that this is Hungary deliberately targeted in the financial markets. We must see that despite a difficult external environment, but in the past 1.5 yearsHungary economy most obviously gratifying changes have occurred in the area. "" An objective point of view, Hungary is not Greece as a terrible mess, but far less government officials say optimistic. "Sun Yongxiang said the good news is that Hungary is well exported into strong, current account surpluses, coupled with the inflow of funds from the EU and foreign exchange reserves of us $ 52 billion, meaning the countryDoes not appear in the short term shortage of funds. However worrying is, as with other European countries, Hungary economy after the financial crisis into the Valley. To get aid from international lenders, Hungary had to begin the difficult reform course. In particular, in 2010, Hungary after the new Government in power, to fulfill election promises of tax cuts, an end to austerity policy, introducedA series of one-off measures to close the fiscal gap: telecommunications, energy, retail, and financial sector "crisis taxes"; nationalization of mandatory pension funds. The view was expressed that these "unorthodox" measures would allow the Government to taste the bitter fruit. In particular, this year in September, allows families a one-time discount to repay foreign currency-denominated mortgage, allow foreign banks to lose,This move has angered most of Hungary's foreign bank. In addition, Hungary the public debt burden is further increased. 　　According to Hungary's Central Bank released data showed on Wednesday, the country's debt to GDP ratio has reached 82% in the third quarter, the ratio of the second quarter of this year is 76.7%. Sun Yongxiang believes that development to this debt crisis is already showing "full openFlower "pattern. Like p has downgraded Italy's credit rating like fuse ignited the crisis spreading to large economy, Moody's move also means that the crisis "virus" has spread to Central and Eastern Europe and other countries. Germany bonds being "snubbed" before, soaring yields continued across the eurozone Member States last week. At that time some analysts pointed out that, this may herald two years-Long European debt crisis is entering a new and dangerous phase, crisis relief patterns also change, consisting of a dozen before Shi Yuanguo aid minority crisis into a crisis of health responded to a dozen countries. He pointed out: "in addition to Hungary swtor power leveling, a Belgium de Bank weighed in grams and summer were facing financing difficulties, Slovenia 10-year yield is close to 7% just after the record, following theEdgar fornia two bank failures, Latvia on Tuesday to abolish the 10-year bond auction, visible by the spread of the crisis in the banking system of the transmission chain has been formed. ”