Investors were rocked last week with more dire news emerging from
Europe. This time, it's Hungary's economic crisis that threatens to
put the country into bankruptcy. A Hungary specific exchange traded
) does not exist, but there are funds with exposure that you may
want to be on the lookout for.
According to CNN Money
, Hungary's forint plunged to a one-year low against the euro
Friday, as investors digested news that Hungary's economic crisis
is worse than was reported. Likewise, the cost of insuring
Hungarian debt surged 23% to $380,000 on $10 million worth of bonds
for five years.
By Monday, Hungary backed off its statements in order to calm
investors. A government official says the country is doing and will
do everything it can to follow "the planned deficit path,"
reports Dan Bilefsky for
The New York Times
Back in 2008, Hungary took $25 billion in aid from the IMF and
European Union, as it tried to reverse years of deficit spending.
But Peter Szijjarto, a spokesman for new Prime Minister Viktor
Orban, doesn't think the bailout was enough. He expects Hungary's
plans to bring its budget deficit under 4% of GDP will fail. [
Despite the forecast, the new government expects to move forward
with plans to cut tax rates in an attempt to boost the economy.
Naturally, investors are worried that the new government lacks the
experience and knowledge to deal with the crisis adequately.
The ETF Professor for Benzinga
gives investors looking to trade on Hungary's woes - or avoid them
entirely - the following ETFs:
SPDR S&P Emerging Europe ETF (NYSEArca:
Emerging Global Shares Emerging Markets Energy Titans ETF
Emerging Markets Financials Titans ETF (
iShares MSCI Emerging Markets Eastern Europe ETF
ProShares UltraShort MSCI Emerging Markets ETF
ProShares Short MSCI Emerging Markets ETF (
For more stories on Hungary, visit our
Sumin Kim contributed to this article.