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Hungary: Socialist parliamentary group gives mandate for IMF agreement

  The Socialist’s parliamentary group has given a mandate to Prime Minister Ferenc Gyurcsány to sign an agreement with the IMF, minister without portfolio in charge of the prime minister’s office and deputy head of the Socialist Party Péter Kiss said late on Monday.

 

Kiss declined to reveal any further details. Kiss said it was a matter of national importance to organize secure financing. For this reason the country is holding talks simultaneously with the EU and the IMF on establishing financial backing that is of a sufficient size and that can be called down any time.

MTI learnt that the government wants to suspend annual bonuses for public sector workers and reduce annual bonuses for pensioners to meet conditions for the IMF agreement. The annual bonuses are equivalent to a full month’s pay and pension payment.

The IMF expects the government to reduce expenditures by about Ft 300 billion in 2009 and to calculate with a slowdown in GDP growth as a condition for the bailout package, MTI learnt. (MTI-Econews)