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IMF welcomes positive developments on Hungary capital market

  The International Monetary Fund welcomes the positive developments on Hungary’s capital market, among them the successful re-launch of bond auctions, said director of the IMF’s European Department Marek Belka in Washington on Friday.

Hungary is in a more difficult situation than, for example, the Czech Republic or Poland, but the successful issue of bonds is a sign the assessment of Hungary’s capital markets is improving, Belka said.

The IMF’s credit program with Hungary is progressing well and the fund is ready to discuss how to continue the program, he said.

Hungary will not automatically get a Flexible Credit Line (FCL) after its Stand-By Arrangement (SBA) runs out in March 2010, Belka said. Only countries that have strong foundations and good indicators are eligible for the more flexible construction, he added.

“I hope that one day Hungary will meet the conditions for an FCL or it will no longer be necessary, because the situation has improved so much,” Belka said. (MTI-Econews)