News that Hungary will commence talks with the IMF on a “new type of cooperation” is clearly a positive step following the turmoil seen in local markets over the past couple of weeks. The forint has rallied by 2.5% against the euro since the announcement, while equities are up by nearly 4%. However, big questions remain as to what form this cooperation might take, and whether the IMF will grant assistance on terms that are politically acceptable to the Hungarian government.