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EBRD chief advises caution until Hungary shapes mid-term economy policy

Hungary needs to be closely watched since the country's medium term economic policy is still unclear, Thomas Mirow, president of the European Bank for Reconstruction and Development, said at a conference in Vienna, the Associated Press reported.

“What would help Hungary most is to rebuild trust with international investors, that would also sustain the value of the forint,” Mirow told Reuters. “We need to outphase foreign lending and replace it with local currency lending,” he added. Hungary's government recently decided to ban foreign currency-based retail mortgage loans from July. Still, about 65% of Hungarian banks' lending stock is denominated in foreign currency, mainly Swiss francs. (MTI-Econews)