Hungary braces for volatility after EU, IMF walk away from budget talks

EU and IMF negotiators abandoned talks on the weekend with Hungary's government over its plans to rein in its budget deficit, bluntly saying Prime Minister Victor Orban's strategy was inadequate, a move that is likely to set off panic in the markets and see the forint and Hungarian bonds take a steep dive.

In what analysts are nearly unanimously calling a "very rare" development, the International Monetary fund and the European Union abruptly called off their review of Budapest's €20 bi...