Economy
IMF ready to start talks with Hungary once c.bank issues are resolved - Ivaschenko
"At this point the ball is in the government's court," the Fund's representative to Hungary, Iryna Ivaschenko, told a conference organised by the Hungarian Business Leaders Forum.
"We are ready to start as soon as the outstanding issues on central bank independence are resolved" Reuters cited Ivaschenko as saying at a business conference in Budapest today, reiterating the IMF's stance on the matter.
Parliament is due to pass government-sponsored amendments to the Central Bank Act later this month, but it is not clear yet if that is sufficient for the IMF to start the talks, and Ivaschenko declined to comment on the matter."But let me assure you that at this point these issues have been discussed with the government at length....and the five-party (EU, IMF, ECB, National Bank and government) expert working group is also at work, and we are trying to find a solution through these talks," she said.
At the same event Hungary’s chief aid negotiator Tamás Fellegi, who will be replaced by state secretary Mihály Varga on 1 June, said the cabinet expects to start talks about a new financing deal with the European Union and the IMF in June and that a deal could be realistically reached in the autumn.Fellegi stressed that “the Turkish card was not and will not be on the agenda," i.e. the government has no intention to just buy time and then opt out of the deal.
Fellegi said a turning point in the IMF/EU talks was reached on 25 April when the European Commission gave Hungary the go-ahead to start formal talks, i.e. a political compromise was reached.
“The five participants of current talks, i.e. the IMF, the EU, the European Central Bank (ECB), the Hungarian government and the National Bank of Hungary (NBH) are all interested in sending a message to the markets that this agreement will be reached," Fellegi said.
Hungary faces "acute" challenges in terms of economic growth both in the short and longer term, and conducting predictable policies is crucial due to the country's remaining vulnerabilities, Ivaschenko said today.
Ivaschenko also said that Hungary's budget and current account has improved significantly, but it still has a high level of debt and rollover needs which make it especially susceptible to shifts in financial market sentiment.
"The challenge of growth that everybody is facing in the region in Hungary is very acute both in the short term and also in the longer term," Reuters cited her as saying.
"I would say while all the countries in the region are facing the same challenges, in Hungary the focus on policy predictability and sustainability... is especially acute," she added.
Hungary hopes to start talks with the International Monetary Fund and EU on a new funding deal next month.
"We are ready to start as soon as the outstanding issues on central bank independence are resolved" Reuters cited Ivaschenko as saying at a business conference in Budapest today, reiterating the IMF's stance on the matter.
Parliament is due to pass government-sponsored amendments to the Central Bank Act later this month, but it is not clear yet if that is sufficient for the IMF to start the talks, and Ivaschenko declined to comment on the matter."But let me assure you that at this point these issues have been discussed with the government at length....and the five-party (EU, IMF, ECB, National Bank and government) expert working group is also at work, and we are trying to find a solution through these talks," she said.
At the same event Hungary’s chief aid negotiator Tamás Fellegi, who will be replaced by state secretary Mihály Varga on 1 June, said the cabinet expects to start talks about a new financing deal with the European Union and the IMF in June and that a deal could be realistically reached in the autumn.Fellegi stressed that “the Turkish card was not and will not be on the agenda," i.e. the government has no intention to just buy time and then opt out of the deal.
Fellegi said a turning point in the IMF/EU talks was reached on 25 April when the European Commission gave Hungary the go-ahead to start formal talks, i.e. a political compromise was reached.
“The five participants of current talks, i.e. the IMF, the EU, the European Central Bank (ECB), the Hungarian government and the National Bank of Hungary (NBH) are all interested in sending a message to the markets that this agreement will be reached," Fellegi said.
Hungary faces "acute" challenges in terms of economic growth both in the short and longer term, and conducting predictable policies is crucial due to the country's remaining vulnerabilities, Ivaschenko said today.
Ivaschenko also said that Hungary's budget and current account has improved significantly, but it still has a high level of debt and rollover needs which make it especially susceptible to shifts in financial market sentiment.
"The challenge of growth that everybody is facing in the region in Hungary is very acute both in the short term and also in the longer term," Reuters cited her as saying.
"I would say while all the countries in the region are facing the same challenges, in Hungary the focus on policy predictability and sustainability... is especially acute," she added.
Hungary hopes to start talks with the International Monetary Fund and EU on a new funding deal next month.
