EMERGING MARKETS-Debt worries weigh on Hungary, emerging stocks

Mon Apr 16, 2012 9:45am GMT
 

* Hungarian forint lowest in nearly 3 mths, stocks fall

* China's yuan slips after band widens, stocks steady

* Russian stocks fall 1 pct, led by Sberbank

By Carolyn Cohn

LONDON, April 16 (Reuters) - Hungary's forint hit its lowest in nearly three months on Monday on renewed worries about the country's chances of getting international aid, with concern about the euro zone crisis keeping all emerging assets depressed.

Spats between indebted Hungary and the European Commission have delayed the start of aid talks with the European Union and the International Monetary Fund.

Hungarian Prime Minister Viktor Orban last week resisted the EU setting political preconditions for starting aid talks, saying it would amount to "blackmail".

Rising euro zone peripheral bond yields have encouraged a sell-off in riskier emerging market assets, and Hungary is one of the most vulnerable in emerging Europe.

"There are renewed fears about the future of the IMF programme in Hungary ... after the government raised objections to the conditions attached to the IMF programme," said Neil Shearing, chief emerging markets economist at Capital Economics.   Continued...

 
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