Budapest- Prime Minister Ferenc Gyurcsany on Friday canceled a trip to two Gulf kingdoms to focus on Hungary's financial crisis and economic slowdown.

Gyurcsany and a Hungarian business delegation had planned to travel to Oman and Qatar for two days starting Tuesday. No new dates were set, the prime minister's office said.

Hungary is the first eastern European nation to face the full force of the global financial crisis, facing a bank liquidity crunch that has prompted offers of aid by the European Central Bank and the International Monetary Fund.

Hungary's forint reached a two-year low against the euro this week, as investors soured on the country's already ailing economy. The Budapest stock exchange's benchmark BUX index has lost 36 per cent of its value since September 29 and 55 per cent over the past year.

A rash of consumer loans made in foreign currencies such as the euro and the Swiss franc have contributed heavily to the crunch for Hungarian banks. At least one rating agency has downgraded Hungarian government bonds.

Hungary's national bank Wednesday jacked up its lead interest rate to 11.5 per cent from 8.5 per cent in a bid to defend the forint. (dpa)