“How Viktor Orban’s statements on Ukraine are impacting Hungary’s economy and aid from the EU”

According to the publication, the fall was provoked by statements by Prime Minister Viktor Orban that Ukraine cannot win the war with Russia, and also that Hungary disagrees with the EU on the issue of providing assistance to Ukraine.

In addition, due to Orbán’s position, Hungary will have to wait longer for the European Commission to unlock multi-billion dollar aid to the country, which will have a negative impact on the local economy.

Also, the decision of the Hungarian Central Bank to reduce the forint by 1 percentage point for the first time since the beginning of the year influenced the fall of the forint. up to 17% discount rate.

“The rate cut will make the forint more sensitive to negative news related to both internal and external factors,” said Petr Matis, senior currency analyst at In Touch Capital Markets.

Hungary’s key rate of 18% attracted investors, which helped the forint to appreciate by 6% against the euro since the beginning of the year.

Orban’s statements on Ukraine

Hungarian Prime Minister Viktor Orban has repeatedly made scandalous statements about Ukraine.

He argues that Ukraine is not able to finance its needs, and the war seems to continue only at the expense of partners. Orban also said that Ukraine allegedly cannot win the war against Russia.

In addition, the Hungarian government believes that NATO and the European Union have de facto become the so-called “party” in the Russian-Ukrainian war. Allegedly due to the fact that they provide support to Kyiv in the fight against aggression.

Blocking aid to Ukraine and sanctions

EU foreign ministers failed to approve the allocation of the eighth tranche for the purchase of weapons for Ukraine, as Hungary threatened to veto the transfer of funds.

Hungarian Foreign Minister Peter Szijjarto noted that Budapest is blocking funds from the EU, because he wants Ukraine to lift sanctions from the Hungarian OTP Bank, previously included in the list of international sponsors of the war, because it continues to work in Russia.

Orban said today that Hungary will continue to block EU aid to Ukraine if Kyiv upholds restrictions on Hungarian companies.