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Gov't decision not to renew IMF loan “justifiable”, says Simor

National Bank of Hungary governor András Simor said he regretted losing the safety net offered by the country's IMF financial support package but added that the government's efforts to determine its own economic policy once again were “justifiable”, speaking in an interview with French daily Le Monde published on Friday.

Asked about the government's decision against making a new agreement with the IMF when the original contract – signed in the midst of the financial crisis in the autumn of 2008 – expires in October, Simor said the cost of Hungary's borrowing would rise, but the country would no longer have to follow economic policies approved by the IMF and the EU.

“As a central bank governor, I can only regret the loss of the safety net. But the government's decision that it wants to freely determine economic policy is justifiable,” Simor said. “Turning down the safety net in itself means more rigor, discipline and transparency,” he added. (MTI-Econews)