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No new IMF loan agreement, Matolcsy confirms

National Economy Minister György Matolcsy reiterated the government's commitment to achieving next year's deficit target of under 3% of GDP and he confirmed there would be no new loan agreement with the IMF, speaking on public radio.

The bank levy will be necessary to meet the deficit target this year and next, Matolcsy said. The future and the size of the tax in 2013 will depend on whether a unified European bank tax is introduced by then, Matolcsy said.

Hungary will achieve 2.5%-3% GDP growth only if the National Bank of Hungary's policy changes, Matolcsy said. The central bank can start stimulating the economy not by lowering rates, but by launching a bond purchase program, he added.

The government will keep gas price subsidies for households in place next year, Matolcsy said. (MTI – Econews)