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Market assessment of Hungary closer to reality, says Jarai

Investors' assessment of Hungary is starting to move closer to reality, and a genuine cut in taxes will begin to convince them that the country is more secure than they thought, Zsigmond Jarai, who heads the National Bank of Hungary's supervisory board as well as the Fiscal Council, said in an interview with public television on Monday.

The market is beginning to believe that Hungary is going in the right direction, Jarai said. The successful issue of a EUR 1 billion eurobond last week was a "very big" sign of confidence, he added.

The Fiscal Council will discuss at its next meeting on Tuesday how to codify fiscal paragraphs in the new constitution in legislation requiring a two-thirds majority to amend, he said. The body's real work will start when the government submits the 2012 budget, he added.