by Calculated Risk on 6/04/2010 11:45:00 AM

A break from the employment report ...

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Update: a couple of Hungarian readers have told me the translation was out of context (ht Gabor, Greg). Here is a different translation:

"It was prime minister Ferenc Gyurcsany [previous prime minister of the now opposition Socialist Party] who talked about default. Indeed, he even remarked proudly that Hungary was on the verge of default one and a half years ago ... and he was proud that he could only save Hungary from default with the help of IMF. In this regard it’s not an exaggeration to talk about default.”

So the spokesman was apparently referring to the comments of the previous prime minister, and not talking about default now.

Also the readers said the figures that were "manipulated" were forecasts of deficit (not actual deficit like Greece).
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The euro fell to under 1.20 dollars this morning as Hungary spooked investors.

From Bloomberg: Sovereign Credit-Default Swaps Surge on Hungarian Debt Crisis

Credit-default swaps on sovereign bonds surged to a record on speculation Europe’s debt crisis is worsening after Hungary said it’s in a “very grave situation” because a previous government lied about the economy ... a spokesman for Prime Minister Viktor Orban said talk of a default is “not an exaggeration” because a previous administration “manipulated” figures.