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Hungary says deal with IMF by autumn 'realistic': report

02 May 2012, 10:37 CET
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(BUDAPEST) - Talks between Hungary and the International Monetary Fund over a 15-20 billion euro ($19.7-26.3 billion) loan could be concluded in the autumn, Budapest's chief negotiator said on Wednesday.

"I think autumn is a realistic date," Tamas Fellegi told the economic daily Vilaggazdasag.

The European Union and IMF said last week they were ready to resume talks with Budapest.

This followed pledges by Hungary that it would alter contentious legislation on its central bank, which had stalled talks for months.

"We cannot begin talks as long as parliament has not adopted the necessary changes and there are a dozen amendments to be passed," Fellegi noted Wednesday.

"These changes must enter into force for the negotiations to begin," he said, adding that the framework for talks could be agreed this month.

Fellegi confirmed that Budapest was seeking a stand-by credit line of 15-20 billion euros, but said the exact sum would be decided in the talks with the IMF.

Hungary approached the EU and IMF in November for a possible loan after its currency, the forint, plunged in value and the country's borrowing costs soared.

Talks came to halt however over new legislation that critics said would limit the independence of the central bank, including a requirement that the monetary council swear an oath on the constitution.

Hungary already barely escaped bankruptcy in 2008, thanks to a 20-billion-euro loan from the EU, the IMF and the World Bank.


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