PM says less chance of deal with IMF
Hungary's chance of reaching an agreement on precautionary financial assistance from the International Monetary Fund has fallen because the IMF is unwilling to ensure a flexible credit line for the country, Prime Minister Viktor Orbán told journalists in Brussels on Wednesday.
The IMF said no to Hungary's request for a flexible credit line, Orbán said, after delivering a lecture at Bruegel, a Brussels-based think tank. Hungary does not want a loan from the IMF, because it does not need one; it can finance itself from the market, he added. The IMF insists on a loan, he said.
The IMF's Flexible Credit Line (FCL) is a construction for "countries with very strong fundamentals, policies, and track records of policy implementation", according to the fund. Disbursements under the FCL are not conditional on the implementation of specific policy understandings, as is the case under Stand-By Arrangements, the construction of Hungary's 2008 IMF loan.
Orbán said the government respects the independence of the National Bank of Hungary, answering a question.
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