IMF says Hungary needs to agree with EU on fiscal policy before start of talks.

By bne IntelliNews January 20, 2012
Hungary needs to reach an agreement with the EU on fiscal policy issues and the independence of the central bank before the start of financial aid talks with the IMF, representatives of the fund told minister Tamas Fellegi, MTI news agency reported citing information from Index.hu. IMF needs to see tangible steps that show the authorities' strong commitment to engage on all the policy issues that are relevant to the macroeconomic stability, the funds managing director Christine Lagarde said in a statement after meeting Hungarian officials in Washington last week. Hungarys PM Victor Orban has already expressed his readiness to modify the disputed legislation in line with EC recommendations but the government has not yet announced any measures for fiscal adjustments. According to the ECs conclusions on countrys budget position, the government has not made sufficient progress towards a timely and sustainable correction of its excessive deficit. Hungary seeks to secure up to EUR 20bn precautionary-type Stand-By Arrangement from IMF and EU. The country has already received such financial package in 2008.

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