Part 6/10:
Adding to Hungary’s fiscal woes are soaring debt servicing costs. In 2023, Hungary's government was compelled to dedicate more than 4% of its GDP to simply servicing its existing debt, a staggering figure that surpasses both the EU average and that of Central European nations. The central bank has maintained high-interest rates, currently set at 6.5%, as a response to persistent inflation, placing additional strain on the government’s borrowing capabilities and escalating the cost of debt.