Hungary Runs Out of Options as Orban Bonds Routed in IMF Row

Hungary’s plunging bonds and falling currency pushed Prime Minister Viktor Orban into his first major U-turn in office in order to return to the negotiating table with the International Monetary Fund.

The risk of the country failing to reach an agreement with the lender sent the forint last week to a record low, pushed default risk to a record high and lifted government borrowing costs to the highest level since 2009. Talks for Hungary’s second bailout in four years broke down last month as the government refused to alter a central bank law that the EU said threatens the monetary authority’s independence.