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Hungary’s Junk Grade Boosts IMF Need as Rate Pressure Rises

Hungary must redouble efforts to obtain International Monetary Fund aid and the central bank should raise rates to ease financing risks after Moody’s Investors Service cut the country’s credit grade to junk, said fund managers from Budapest to London.

Prime Minister Viktor Orban, who shunned seeking an IMF loan since coming to power last year until the forint fell to a record against the euro this month, may need to accelerate talks with the Washington-based lender to bolster investor confidence, fund managers at Aegon Fund Management, Aberdeen Asset Management, and K&H Fund Management said.