Independence of Hungarian Bank in doubt

THE INDEPENDENCE of Hungary’s central bank could be undermined by a new draft law from the country’s government, the European Central Bank (ECB) warned yesterday.

Such worries prompted Standard and Poor’s to slash Hungary’s credit rating to BB+/B, branding the country’s debt “junk”, and argue that “official actions raise questions about the independence of oversight institutions” which “is likely to have a negative impact on investment and fiscal planning”.