Hungary’s bonds fell the most in more than a week and the forint dropped after the International Monetary Fund said the country needs to take “tangible steps” on resolving policy issues before aid talks can be resumed.
The yield on Dana Gas PJSC’s $1 billion Islamic bonds jumped to the highest level in two weeks as the United Arab Emirates energy company reported full-year results without providing an update on the sukuk repayment.
Hungary’s forint and stocks may weaken as government obligations to compensate Budapest Airport for losses tied to the bankruptcy of state-owned airline Malev Zrt. threaten state finances, Equilor Befektetesi Zrt. said.
Hungary cut its main interest rate for a third month and may consider further easing as concern about a recession outweighs the European Union’s fastest inflation and fading chances of obtaining international aid.