Hungary's central bank governor Gyorgy Matolcsy said Monday the country will soon repay a 2008 loan from the International Monetary Fund, and that the organisation should close its Budapest office. About 2.2. billion euros remain outstanding from a 20 billion euro ($25 billion) loan Hungary took from the IMF, the EU and the World Bank in late 2008 after it was frozen out of the bond market at the height of the global financial crisis. In a letter to IMF Managing Director Christine Lagarde and posted on the central bank's website, Matolcsy, a loyal ally of Prime Minister Viktor Orban, proposed the closure of the office -- opened in 2009 -- saying Hungary expects to pay back the loan ahead of schedule in 2014. "Considering that (the repayments are) almost complete, we have come to the conclusion that it is not necessary to maintain the Fund's Resident Representative Office in Budapest," the letter read. "We appreciate the valuable support of the Fund in times when Hungary was hit by the crisis and the financing of its public debt... became questionable," it continued. The IMF's Budapest office said in a statement that Lagarde had received Matolcsy's letter, and that the Fund's resident representative for Hungary, Iryna Ivaschenko, would not be replaced at the end of her term in August. But it said the IMF would maintain regular bilateral consultations with Hungarian authorities. Hungary has had a fractious relationship with the IMF since Orban's right-wing government came to power in 2010. Long-running talks begun in 2011 between Budapest and the IMF on a second loan -- a 15 billion euro credit line -- ended early in 2013 after consistent disagreement on issues including the nature of the loan and economic policy. Last year the government ran an advertising campaign criticising the IMF for "interference" in Hungarian policy-making. Business website Portfolio.hu commented that Monday's announcement was a message from the government that it considers its affairs with the IMF as closed. "This can be used in the government's campaign communication as the elections (due in early 2014) approach," the website said. The Fund operates offices in 84 countries worldwide, including three of Hungary's neighbours, Serbia, Romania and Ukraine. In April the IMF closed its office in Latvia after it said the Baltic country had paid back in 2012 a loan taken out in 2008.
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor