While many western investors fear for the financial health of major banks that engaged in business with collapsed giant Lehman Brothers, experts in Eastern Europe are pointing out that banks operating these developing markets will remain virtually unexposed to the unfolding crisis west of their borders. 

According to a Thompson news report, no major bank in Hungary did business with the Lehman Brothers over the past years, which means that the impact of what is turning into a serious crisis in the West will be muted in Hungary.

Julia Kiraly, vice-president of the Hungarian National Bank, spoke with reporters and reassured the public that ordinary citizens, as well as investors in Hungary had no reason to fear, as the country’s financial situation was secure. 'We don't feel that Hungarian consumers or Hungarian markets should expect any significant shock at this point,' Kiraly told reporters during a conference this week.

In addition to the stability of Hungary’s financial markets, especially when compared to developments in the West, the decrease in the value of the Hungarian forint against the euro in recent weeks gives western investors more buying power than before.

One euro is currently worth 242 forints, which represents a steep decline in value for Hungary’s currency from the all-time high of 227 forint rate earlier this summer.

The Hungarian currency peaked in late July and has gradually softened against both the euro and Sterling since then, making the country’s real estate market even more appealing to westerners.