Economy
Hungary must be cautious with FX reserves - PM Orbán
"I would be very cautious to do that. It is not the authority of the PM. If you have such an open economy as Hungary ... you must be very cautious with fx reserves," Reuters cited Orbán as telling reporters during a visit in Warsaw.
"I am in favour of very cautious policy and would leave it to the authority of the national bank governor."
The reassuring statement comes on the back of reports that the government is putting together another programme to assist the most distressed foreign currency debtors and that it considers tapping the central bank’s (NBH) foreign currency reserves to do so. The reports caused jitters on the market, sending the forint close to 300 versus the euro.It was also reported in the local press that the government plans to allow the conversion of CHF-denominated loans to euro or forint debt that would be the final solution for the FX debtors’ problems. According to Magyar Nemzet, new central bank (NBH) Governor György Matolcsy is seeking the co-operation of Swiss National Bank (SNB) Chairman Thomas Jordan (pictured).
SNB spokesman Walter Meier, however, said the bank had not been contacted by the National Bank of Hungary about this topic.
"[...] Mr. Jordan has not been contacted by the NBH with regard to this matter," she responded to an emailed question by Portfolio.hu, adding that the SNB has no further comment.
"I am in favour of very cautious policy and would leave it to the authority of the national bank governor."
The reassuring statement comes on the back of reports that the government is putting together another programme to assist the most distressed foreign currency debtors and that it considers tapping the central bank’s (NBH) foreign currency reserves to do so. The reports caused jitters on the market, sending the forint close to 300 versus the euro.It was also reported in the local press that the government plans to allow the conversion of CHF-denominated loans to euro or forint debt that would be the final solution for the FX debtors’ problems. According to Magyar Nemzet, new central bank (NBH) Governor György Matolcsy is seeking the co-operation of Swiss National Bank (SNB) Chairman Thomas Jordan (pictured).
SNB spokesman Walter Meier, however, said the bank had not been contacted by the National Bank of Hungary about this topic.
"[...] Mr. Jordan has not been contacted by the NBH with regard to this matter," she responded to an emailed question by Portfolio.hu, adding that the SNB has no further comment.
