The minister confirmed that the Hungarian Government continued to make efforts at the earliest possible commencement and closing of negotiations with IMF and the EU and was ready to accept any conditions, which promoted Hungary’s long-term economic and social stability, improvement of its competitiveness, the permanent restoration of market and investor confidence in the country, and the Government’s unceasing efforts at setting the Hungarian economy to a permanent growth trajectory - so long as they did not infringe upon the country’s sovereignty.

In his address entitled “Before IMF, After IMF” the head of delegation highlighted that expert consultations had been regularly held with the representatives of the European Commission (EC) and the IMF since January relating to the content of the Country Report and the expected macro-economic data in the interest of starting the official negotiations on the IMF-EU financial support to provide Hungary with a safety net for Hungary.

He expressed his hope that the results achieved in the infringement proceedings and the consultations to be held with the representatives of the International Monetary Fund (IMF) and the European Central Bank (ECB) in the next period would open the way to the earliest possible start of negotiations.

Tamás Fellegi confirmed that the Government remained firmly committed to market financing and Hungary did not need to promptly draw down the IMF-EU funds. He pointed out that the benefit of the agreement was actually the possibility to prevent the evolution of the need to draw down this kind of financial support.

In the head of delegation’s assessment, the Hungarian Government’s responsibility and goal was, in addition to securing the funds required for economic growth, to reduce the financial pressure on people and businesses through the direct and indirect means available for it. He pointed out that the financial security provided by the stand-by agreement with IMF and the EU would give Hungary the opportunity to stabilise the exchange rate of the forint, cut the yield on government securities, and thus save tens of billions for the Government budget.

He stated that reduction in government security yields may proportionately cut interest on retail and corporate loans, and drop in capital costs would render Hungary more competitive in the battle for foreign investments. He added that the IMF-EU agreement may also be an important guarantee for including banks in financing the Hungarian economy.

Tamás Fellegi stated that the Government had underestimated the unfavourable effects of the debt crisis and the dragged recession, as well as the extent of money market reactions on the measures taken, and did not expect such a loss of external and internal confidence generated by the effects. He mentioned the permanent restoration of the confidence of markets and investors as a priority objective.

(Press Office of Minister without Portfolio Tamás Fellegi)"

Source: kormany.hu