As long as the international environment does not change, the country's debt can certainly be financed in 2013, and maturing debt can be renewed, Minister Varga told M1 television channel's morning show, Ma Reggel ("This Morning"). He said talks were underway with the IMF and the EU, mainly on whether recently introduced taxes affecting the financial sector can be phased out or the tax burden on the sector reduced.

The international organisations will assess the 2013 budget after it is approved by Parliament, and then negotiations can continue, Minister Varga added.

Hungary’s chief negotiator stated however that the IMF has already signaled its disagreement with some parts of the budget, but Hungary has to keep a very strict budget due to pressure from the EU. If Hungary cannot keep the deficit under 3 % the country may lose significant EU funds.

Talking about the pros and cons of a possible deal, he stated that an agreement could mean greater security for investors; however it is important what the conditions would be.

Minister without portfolio

Source: kormany.hu