Hungary not negotiating IMF loan, sees downgrade risk, says Matolcsy

MNB

Hungary is cooperating with the International Monetary Fund, but has no plans to seek a new IMF loan, national economy minister György Matolcsy said in an interview with weekly Heti Válasz, adding that he thinks it would be a sign of weakness to return to the IMF.

However, the minister said he can see a realistic threat of one credit rating agency cutting the country's rating to non-investment grade.

Matolcsy also said he would like to see Hungarian families freed from the burden of foreign currency denominated loans by the end of next year.

He said the government plans further moves to "slice off as much as possible" from the stock of retail foreign currency loans worth close to HUF 5,000bn, adding that the cabinet would like to free first families, and later companies and municipalities from the burden of forex loans.

In order to achieve this, the government is working to develop an alternative financing system, in which even a state-founded retail bank could play a part, and the existing state-owned banks could also be recapitalized. SMEs could be offered interest-subsidized loan facilities to replace forex loans with forint loans.

ADVERTISEMENT

Business confidence edges up as consumer sentiment weakens Analysis

Business confidence edges up as consumer sentiment weakens

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

Energy Efficiency: End-users, Energy Traders and Other Stake... Inside View

Energy Efficiency: End-users, Energy Traders and Other Stake...

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

SUPPORT THE BUDAPEST BUSINESS JOURNAL

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.