As I mentioned a few days ago, the Hungarian problem is much more important than its given credit for.
Austrian banks have made massive amounts of loans to Hungary. For some reason, they decided it would be a good idea to denominate these loans in Swiss Francs instead of Florints. Now that the exchange rate has blown out, Hungarians cant afford to pay the loans back.
Austrian banks also have a Hungarian govt debt on their books which looks like its about to get downgraded to junk status.
So you've got Austrian banks with bad debt and loans on their books which are greater than the cap.
Goodbye AAA rating.
As I mentioned a few days ago, the Hungarian problem is much...
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Last
7,829.7 |
Change
66.500(0.86%) |
Mkt cap ! n/a | |||
| Open | High | Low |
| 7,763.2 | 7,832.3 | 7,763.2 |
| XJO (ASX) Chart |