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Hungary: Blame New IMF Deal on Euro Zone Debt Crisis |
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Wednesday, 23 November 2011Hungary has blamed the euro zone debt crisis for prompting it make an official request for precautionary financial help from the International Monetary Fund and the European Union.
"The government's economic policy is undoubtedly a success, thanks to the unconventional, bold and unusual steps, which restored the country's economy," Economy Minister Gyorgy Matolcsy said in the parliament.
He stressed that the country has reduced its budget deficit below 3% of GDP for the first time since 2004 and unemployment has fallen below 10%. According to Matolcsy the risks threatening the Hungarian economy have been triggered by the debt crisis in the eurozone.
"This is why we need a shield from the IMF," he said.
The IMF confirmed on Monday that it and the European Commission had received a request for assistance.
"The authorities... indicated that they plan to treat as precautionary any IMF and EC support that could be made available," the IMF added.
Last week, Hungary's economy ministry said in a statement: "The government has started talks with the IMF and the EU about a new agreement that, instead of austerity measures, will aid Hungary's economic growth."
The nation received an IMF-led bailout in 2008, but Prime Minister Viktor Orban ended the 2008 IMF deal, which had been agreed under the previous government, last year.
As the eurozone debt crisis has unfolded, official figures showed that the Hungarian governmment's total debt had risen to 82% of its output, as its currency, the forint, has weakened.
Hungary has said it wants "a new type of co-operation" with the IMF. |
Wednesday, 23 November 2011
Novinite
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