Economy
Hungary Varga comments on forint for the second time within hours
“[...] if the Fund is ready to continue talks in this respect we are sitting at the negotiating table," Varga added.
He reiterated that Hungary does not need actual funds rather a safety net in case European markets get upset.
The minister without portfolio in charge of credit talks with the International Monetary Fund (IMF) and the European Commission said the same thing late on Wednesday in an interview with commercial broadcaster HírTV, but he did not mention that Budapest’s motivation for a deal would be smaller.An IMF delegation started Article IV consultation and the third review under Post-Program monitoring of the Hungarian economy yesterday. The regular half-yearly mission in scheduled to remain in the country until 28 January.
Varga emphasised that both the IMF and the EU believe that Hungary’s efforts to reach balance in fiscal policy was successful; state debt is on the descent and the budget shortfall is expected to come in below 3.0% of GDP for the third consecutive year in 2013 therefore there chances are good that Hungary will be taken out of the excessive deficit procedure (EDP).
The economy needs to be kept on a stable and secure path and it needs to be found how economic growth could be stimulated.
For growth you need investments and for that lending should be increased. The cabinet is in talks with the Banking Association and wants to spur lending possibly by tax breaks.
Answering a question Varga said the exchange rate [of the forint too] in a country where households, the state and businesses have substantial foreign currency debts is a sensitive issue, adding that a considerable forint weakening would certainly exert an unfavourable impact on every player of the economy.
He reiterated that Hungary does not need actual funds rather a safety net in case European markets get upset.
The minister without portfolio in charge of credit talks with the International Monetary Fund (IMF) and the European Commission said the same thing late on Wednesday in an interview with commercial broadcaster HírTV, but he did not mention that Budapest’s motivation for a deal would be smaller.An IMF delegation started Article IV consultation and the third review under Post-Program monitoring of the Hungarian economy yesterday. The regular half-yearly mission in scheduled to remain in the country until 28 January.
Varga emphasised that both the IMF and the EU believe that Hungary’s efforts to reach balance in fiscal policy was successful; state debt is on the descent and the budget shortfall is expected to come in below 3.0% of GDP for the third consecutive year in 2013 therefore there chances are good that Hungary will be taken out of the excessive deficit procedure (EDP).
The economy needs to be kept on a stable and secure path and it needs to be found how economic growth could be stimulated.
For growth you need investments and for that lending should be increased. The cabinet is in talks with the Banking Association and wants to spur lending possibly by tax breaks.
Answering a question Varga said the exchange rate [of the forint too] in a country where households, the state and businesses have substantial foreign currency debts is a sensitive issue, adding that a considerable forint weakening would certainly exert an unfavourable impact on every player of the economy.
