22 Nov 2011

IMF and EU asked for assistance by Hungary

9:31 am on 22 November 2011

Hungary has asked the International Monetary Fund and the European Union for financial assistance.

Official figures show that the governmment's total debt has risen to 82% of the country's output.

The IMF confirmed on Monday that a request for assistance had been received.

The forint fell to a record low against the euro last week and government bond yields have soared.

The BBC reports most mortgages in Hungary are denominated in a foreign currency, the Swiss franc in particular.

Hungary received an bailout led by the IMF in 2008, but the deal was ended last year.

Since then, Prime Minister Viktor Orban has put in place a series of unconventional measures, including big taxes on banks and an effective nationalisation of pension funds.