Hungary at a crossroads: with or without the IMF?

Tweet
Comment [1]

In this favourable situation a number of large investment banks would be willing to manage an FX bond issuance and even independent experts believe that selling a couple billion euros worth of debt should not be a problem. Putting an FX bond issuance under its belt the cabinet would feel set to forget about funding problems for this governing cycle, as it may not even have to raise any more FX funds until 2014. It would only need to make sure its HUF debt auctions are unproblematic. In other words, for the first time since it announced returning to the IMF for aid in November 2011, the government could honestly think not signing a deal with the IMF/EU is a viable alternative.

Curious George

“The forint bond auctions – thanks to the high yields – were successful and households’ appetite for local government securities also increased.”

Do Hungarian households buy significant amounts of govt securities? I remember reading here that 75% of Hungarians have no savings. I find it strange that households would put their money in bonds rather than cash. What sort of bonds are these that the 25% would buy significant numbers?