Bloomberg News

Hungary Risk Cost, Rates May Rise on Central Bank Plan, BNP Says

December 15, 2011

Dec. 15 (Bloomberg) -- The cost of insuring against a default on Hungary’s debt may rise because of a proposal to merge the central bank and the financial regulator, according to BNP Paribas SA.

The central bank may respond to the deterioration of the country’s perceived risk by raising the benchmark interest rate further, Bartosz Pawlowski, a London-based strategist at BNP Paribas, and colleagues wrote in a research report today.

--Editor: Alan Purkiss

To contact the reporter on this story: Andras Gergely in Budapest at

To contact the editor responsible for this story: Gavin Serkin at

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