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MNB to convert around €2.4 bln in EU funding

The Hungarian Central Bank (MNB) will convert net €2.4 billion of EU funding arriving in Hungary in 2009 into forints on the interbank market, the MNB announced.  

On Monday, an MNB spokesman told Econews the MNB and the Finance Ministry were in talks on the exact amount of net funding expected to arrive in Hungary in 2009 and would announce the figure later.

After an extraordinary meeting of the Monetary Council on Sunday, the central bank said it would begin selling some of the resources from the EU on the market. The bank also said it was prepared to use the full range of monetary tools at its disposal to bring financial market processes back in line with the outlook for the real economy.

Conversion on the market will differ from the MNB's recent practice of converting net EU funding - the balance of support arriving from the EU structural funds to Hungary and Hungary's payments to the EU - into forints directly for the government. (MTI – Econews)