EU closes Hungary central bank infringement case

(BUDAPEST) - The EU's executive arm on Thursday formally closed infringement proceedings launched in January over the independence of the Hungarian central bank, the Magyar Nemzeti Bank (MNB).

"Today's decision was made possible thanks to the adoption by the Hungarian parliament of legal amendments to the central bank statute on 6 July," the European Commission said in a statement.

Concerns that legislation by the right-wing government of Prime Minister Viktor Orban endangered the bank's independence last year led to a breakdown in talks over Hungary's request for financial help from the International Monetary Fund and European Union.

The government then tweaked the central bank legislation, allowing talks with the IMF over a 15-billion-euro ($18.4 billion) credit line to resume in Budapest this week after months of delay.

Representatives from the European Union were due to join the talks which are expected to last around a week, from Wednesday, state news agency MTI said.