International Monetary Fund (IMF) and the European Union eventually stopped to review a Hungarian funding programs implemented since 2008 to save the country from financial crisis. The reason, the two institutions to see Hungary must take strong action in advance to meet the target of cutting its budget deficit.
With the suspension of the talk means that Hungary will not have access to the funds remaining at $ 25, 1 billion packages of loans, made by the International Monetary Fund and the European Union and is now used as a financial safety net, to review the achievements in the country of Hungary. Negotiations with creditors are expected to be completed by early next week. Analysts said the currency could fall sharply Forint when financial markets reopened Monday because of uncertainty over the international safety net for Hungary.
According to the IMF, under the supervision of the market environment increases the government deficit and debt levels, the previous fiscal deficit target of minus 3.8 percent of GDP in 2010 and below 3 percent of GDP in 2011, continues to be the appropriate anchor for the necessary consolidation process and debt sustainability, and must be obeyed, but additional steps be taken to achieve that goal.
“Consolidation will require sustained long-lasting, the actions of non-distort, the authorities need more time to develop it,” he said.