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Government to Cover Payroll for Troubled Steelmaker Dunaferr

HUNGARY
  • The government has decided to cover the payroll for troubled steelmaker Dunaferr for a period of six months amounting to HUF16bln (EUR41m), Prime Minister Orban announced on Facebook yesterday. “Dunaferr has been ruined by its former owners and management, and finally Brussels' sanctions,” he added. Dunaferr is one of Hungary’s largest industrial corporations, employing over 4000 workers.
  • There are no economic releases or speakers scheduled today, with the next major release (retail sales data) set for release next week.
  • Market focus will shift to the ECB rate decision this afternoon (1315 GMT/1415 CET) where a 50bp hike is fully priced in. The accompanying statement and presser will be closely watched for any hawkish/dovish tilt which would affect the HUF carry profile, which has the greatest YTD carry compared to that of all of its other CEEMEA peers.

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