Economy
IMF will not compromise in talks with Hungary - Lagarde
“Hungary is clearly part of the European Union. It’s a country with which we have had a steady and long relationship. [...]We will continue to entertain the relationship with Hungary," Lagarde said in an interview published on CNN's website at the weekend.
She said she “looks forward" to the visit by Tamás Fellegi, Hungary’s chief IMF negotiator and to their discussions, but she noted that the IMF remains “very concerned" about local legislation.
“We are obviously very concerned that whatever Hungarian legislation is voted by the Hungarian authorities is in compliance with the European requirements," Lagarde said.
“We’re looking into it, the EC is looking into it, and I certainly hope that the Hungarian authorities will be very keen to have their legislation in compliance with European regulation as well, particularly when it concerns the independence of their central bank," she added.
The debt rating of Hungary was cut to BB+ (non-investment grade) by Fitch Ratings on Friday, the third downgrade to "junk" by international rating agencies since November.When asked whether talks will resume with Hungary, Lagarde only repeated that she looks forward to meeting Fellegi, minister without portfolio in charge of leading the aid talks.
To a question whether in view of the recent indications that the cabinet might have shifted its position will the IMF be willing to compromise or the NBH independence is critical to a deal, Lagarde responded: “We’re not complacent, we don’t compromise, but equally we never leave the table."
When the reporter noted that Hungary is “running out of time", Lagarde said “Time is of essence all the time and the visit of the minister [Fellegi] is appropriate, timing is good and... as I said, we never leave the table."
She said she “looks forward" to the visit by Tamás Fellegi, Hungary’s chief IMF negotiator and to their discussions, but she noted that the IMF remains “very concerned" about local legislation.
“We are obviously very concerned that whatever Hungarian legislation is voted by the Hungarian authorities is in compliance with the European requirements," Lagarde said.
“We’re looking into it, the EC is looking into it, and I certainly hope that the Hungarian authorities will be very keen to have their legislation in compliance with European regulation as well, particularly when it concerns the independence of their central bank," she added.
The debt rating of Hungary was cut to BB+ (non-investment grade) by Fitch Ratings on Friday, the third downgrade to "junk" by international rating agencies since November.When asked whether talks will resume with Hungary, Lagarde only repeated that she looks forward to meeting Fellegi, minister without portfolio in charge of leading the aid talks.
To a question whether in view of the recent indications that the cabinet might have shifted its position will the IMF be willing to compromise or the NBH independence is critical to a deal, Lagarde responded: “We’re not complacent, we don’t compromise, but equally we never leave the table."
When the reporter noted that Hungary is “running out of time", Lagarde said “Time is of essence all the time and the visit of the minister [Fellegi] is appropriate, timing is good and... as I said, we never leave the table."
