| Remember 1990. All the central European states were emerging from Communism with their economies in tatters. The Polish government negotiated with its creditors a debt reduction agreement which halved its outstanding foreign debt. The Hungarians, on the other hand, despite an even more onerous debt burden, refused to do so. “We are honest people who repay our debts,” the government argued. Over time, the Hungarians reasoned, investors would remember this stance and reward the country by demanding a smaller risk premium for buying its bonds. |
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
