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Hungary finds loan pot runs dry without spending cuts

Hungary has has been given a sharp reminder of Europe's financial crisis.

Lenders who provided it with an emergency loan say the country will not receive any more money until the government proves that it is prepared to cut spending.

The move has caused a fall in the Hungarian currency, the forint, and may make it harder for the country to tap the financial markets for more money.

Talks are due to resume in September.

Duncan Bartlett reports.

  • 19 Jul 2010