Local media in Hungary have reported that the Europen Council may be considering extending the deadline for a decision on freezing funds for Hungary by two more months. Thus, the forint should strengthen, economists at Commerzbank report.

EC may extend deadline by two months

“The usual decision timeframe was one month, but the EC could extend this by a maximum of further two months in exceptional circumstances – it appears that this extension is now being granted.”

“The media report is likely to be HUF-supportive news: 1) it raises the probability that some compromise may be worked out in time for the funds to be released; and 2) crucially, that recent legislative changes announced by the Hungarian government (in an attempt to address corruption in the use of EU funds) is perhaps being viewed favourably by the EC.”