After Greece, it's Hungary's turn to shake financial markets

A new shockwave hit the Bucharest Stock Exchange, and the RON returned to the level at the beginning of the year on Friday, after the governmental officials in Budapest said at the end of last week that Hungary’s financial situation was dramatic, thus reigniting investors’ fears about regional expansion of the problems in Greece.
The Bucharest Stock Exchange fell by 3.07% on Friday, as a result of the decline of foreign stock markets, after merely two sessions of growth. The RON continued to depreciate in line with the currencies of the region, with rates on the interbank market reaching 4.2190 RON/EUR. The reference rate announced by the NBR on Friday rose by 1.87 bani (100 bani – 1 RON) to 4.2051 RON/EUR, a new high after the 5th of January. CDS cost rose to 300 base points.
In Bucharest, political risk is fuelling investors’ fears, as the Government is to assume responsibility before the Parliament for the laws on austerity measures today.