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Gyurcsány underlines commitment to financial stability

Maintaining financial stability is currently the government's overwhelming priority, while tax cuts could reemerge on the agenda when economic growth returns to around 3%, Hungarian Prime Minister Ferenc Gyurcsány said after consultation with financial market players, analysts and the Central Bank (MNB).

Finance Minister János Veres earlier announced that Hungary's 2009 budget bill was redrafted on the basis of a GDP growth rate of 1.2% compared to a 3% forecast used for the previous version.

The government's tax reduction program could result in Ft 300 billion – Ft 500 billion in tax cuts when the time to enact it arrives, the PM said.

Gyurcsány proposed drawing up tax cut measures in harmony with a mid-term economic growth path and budget financing plan.

Representatives of market players, banks and fund managers confirmed their support for measures aimed at preserving the stability of the financial system. Major market players said that the government and the financial authorities such as the central bank and banking supervisory authorities did not fail to take required moves to fend off the effects of the international credit crunch. (MTI – Econews)