Arab Today, arab today hungary seeking new imf deal
Last Updated : GMT 23:41:58
Arab Today, arab today
Arab Today, arab today

Hungary :seeking new IMF deal

Arab Today, arab today

Arab Today, arab today Hungary :seeking new IMF deal

Budapest - AFP

Hungary said Thursday it was seeking a new deal with the International Monetary Fund, in what would mark a U-turn from its earlier stance, but the financial institution denied talks were under way. Hungary got a 20 billion euro ($27 billion) bailout from the IMF and the EU in 2008 but, after some progress, it has come under increasing pressure to calm nervous investors and halt the depreciation of the forint. \"Within the regular annual economic policy consultations with the IMF, we have launched negotiations about this new type of cooperation,\" the government said in an English-language statement. The cooperation, \"unlike the old one, would not increase government debt as we do not take out a credit, but we will make an insurance contract in order to increase the safety of investors in Hungary,\" the statement said. It added that the new instrument \"would increase our financial and economic independence instead of hindering it like the old one.\" In its reaction to the announcement, the IMF denied that discussions were under way. \"The mission for the Article IV consultation is not a negotiating mission, but a mission to conduct the regular economic surveillance that the IMF performs for all member countries,\" the IMF\'s representative to Hungary, Iryna Ivaschenko, said in a statement. \"The IMF has not received a request from the authorities to initiate negotiations on a Fund-supported programme,\" she said. Ivaschenko said the IMF team that was currently in Budapest for regular annual consultations and the second review under a loan program monitoring of the Hungarian economy. Financial markets initially reacted positively to the announcement of turning to the IMF. The forint, which slumped to record lows against the euro on Monday, jumped to 306.89 from 314.99 to the euro. The direction of forint however changed following the IMF declaration, dropping to 307.73 by 1800 GMT. The benchmark index of the Budapest stock exchange closed after a 3.83 percentage point hike. At the same time, the price of insurance against a Hungarian default -- indicating investor confidence in investing in the country -- fell to 592 points from 607. Analysts who had earlier urged a deal with the IMF in turn estimate that a cooperation might \"buy time in the market,\" Royal Bank of Scotland analyst Timothy Ash was quoted as saying by MTI. The Hungarian Banking Association on its part said a new agreement was \"not only necessary in the economic environment at present, but ... an absolutely useful step that could support stability and development in the coming period.\" Prime Minister Viktor Orban has up to now refused to seek help from the IMF, insisting that his country could finance itself from the markets. Official figures Wednesday showed, however, that Hungary\'s total debt had risen to 82 percent of Gross Domestic Product by September from 75 percent at the end of June, which the authorities blamed on a weakening forint. Hungary has suffered from the eurozone debt crisis as well as the economic policies pursued by Orban\'s centre-right government, which has made investors wary, analysts say. Since coming to power in April 2010, the government has levied huge taxes on various sectors to fill budget holes caused by falling domestic consumption and an income tax cut, and effectively nationalised 11 billion euros in assets held by private pension funds. It also introduced a contested scheme to allow those people who had taken out foreign currency loans to repay their mortgage loans at below-market exchange rates, forcing the lenders to take the resulting losses. Analysts predict Hungary will have the lowest growth among the 10 European Union newcomers who joined the bloc in 2004, with just 0.5-percent growth in 2012. Some have even predicted a recession. Credit rating agencies Standard and Poor\'s and Fitch have warned that Hungary\'s outlook is clouded. Hungary is rated one notch above non-investment grade and a cut to junk status would make the financing of its sovereign debt more expensive and difficult. The country has already experienced difficulty finding investors willing to buy its debt, with several bond auctions cancelled in recent weeks.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today hungary seeking new imf deal Arab Today, arab today hungary seeking new imf deal

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner

GMT 05:53 2017 Saturday ,25 February

Global sovereign debt to hit new all-time high

GMT 05:17 2017 Saturday ,25 February

Oil world cautious on Trump’s next move

GMT 09:59 2017 Friday ,24 February

Baidu revenue slips anew amid ad clampdown

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday