Hungary has implemented the most extensive structural reforms in Central and Eastern Europe, which likely to upgrade the country's status within two years into investment grade rating categories said two Bank of America analysts to Bloomberg.
The BofA experts say that the Hungarian economy may exhibit sustained growth soon, and it can expand an average of 1 percent per year from 2015 to 2020. The good thing is that no changes in government are expected in the coming years so the political system likely remains unchanged ensuring the continuity of the current economic policy.
However, the experts draw attention to the deteriorating results in the banking sector, which can discourage lending. The forthcoming major foreign currency debt bailout - according to Sándor Csányi, HUF 900 billion - would be a burden on the domestic banking sector, whereby the banks profitability may decline.
Hungary lost its investment grade status last year with three major credit-rating agencies, which was later followed by additional downgrades.
(investor.hu – hungarianambiance.com)