Govt official sees €15-20bn IMF agreement


Hungary could reach an agreement with the International Monetary Fund (IMF) on €15bn-20bn in financial assistance for 3-4 years, state secretary of the Prime Minister’s Office Mihaly Varga said in an interview with internet portal on Tuesday.

"Given the fact we only want to use it in a situation of extreme necessity, the money will not raise state debt and a bigger amount could be a possibility. Calculating with our maturing state debt, a three- or four-year agreement for €15bn-20bn is conceivable," Mr Varga told

Mr Varga said an agreement on the financial assistance could be reached by the end of January, after a month and a half of talks between the negotiating parties.

Asked how much of a fiscal adjustment would be required in 2012 because of the worse outlook for GDP growth and the weaker forint, Mr Varga said he was certain that "further steps" would be necessary to meet the deficit target.

He said analysts’ estimates that put the scale of the adjustment between HUF 100bn and 200bn were "not far off from the calculations".

Asked whether further measures would affect the expenditure or revenue sides of the budget, and to what degree, Mr Varga said there were "very few possibilities" on the expenditure side because of public sector layoffs made in 2011 and revenue-side steps were "dangerous" for growth. He said a "mix" had to be worked out that would affect both the revenue and expenditure sides, although the proportion would "depend on calculations being made right now".

Hungary Crude Supply Secured With 'Temporary Solutions' Energy Trade

Hungary Crude Supply Secured With 'Temporary Solutions'

Hungary to Host Next EPC Summit Int’l Relations

Hungary to Host Next EPC Summit

New Tenants at Academia Offices Office Market

New Tenants at Academia Offices

Visitor Numbers, Guest Nights Climb in H1 Tourism

Visitor Numbers, Guest Nights Climb in H1


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.