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Hungary starts talks on new type of cooperation with IMF

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Hungary’s government is starting negotiations on a new type of cooperation with the International Monetary Fund (IMF) in the course of scheduled consultations, the National Economy Ministry told MTI on Thursday.

The ministry said the new type of agreement, unlike the old one, would not increase state debt, as it would not involve taking out a loan but taking out insurance that would boost investor confidence in the country.

Hungary’s economy has undergone a renewal in the past year and a half: the country has ended older types of cooperation that limit its economic independence, and now the focus is on growth, the ministry said. "To achieve [growth], all available instruments must be used," it added.

"For growth, we must first defend our independence. That is, that we can finance Hungary from markets," the ministry said. "This has been made difficult by the prolonged crisis in the eurozone," it conceded.

The ministry said a new type of cooperation with the IMF, tailored to the Hungarian economy and the country’s own interests would be beneficial. Unlike the old cooperation, this new form would increase Hungary’s financial and economic independence, it added.

The forint firmed from over 312 to the euro to under 309 after the ministry made the announcement.

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