Hungary

The European Central Bank has held interest rates at 1% but president Mario Draghi has voiced concerns over the situation in Hungary.

HUNGARY

Credit ratings agency Fitch has cut Hungary's long-term foreign and local currency debt to junk status, following a tumultuous week for the country.

Franklin Templeton Investments' Michael Hasenstab has defended his Hungarian debt position amid reports the group owns 10% of the country's local bond market.

Hungarian bond yields soared above 10% yesterday after the government cancelled a bond swap auction, increasing fears the country will be the first in the EU to default on its debt.

Around 10% of Hungary's local bond market is owned by Franklin Templeton Investments, according to reports.

Aberdeen's emerging market debt team has warned against investing in Turkish local currency government debt after yields spiked to record highs.

Struggling Hungary has moved to raise its benchmark interest rate from 6% to 6.5%, the highest ever level seen in the European Union, in order to protect its currency.

Investment management firms' EMD heads at odds after country sees bonds downgraded to junk status.

Hungary has lost its investment grade credit rating from Moody's after the country went cap in hand to the International Monetary Fund (IMF).