IMF will not attach conditions to loan, says Fiscal Council head

By MTI

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The International Monetary Fund will not tie its loan to dictated preconditions, rather it expects Hungary to modernise its economy, Fiscal Council head Arpad Kovacs said on public television on Tuesday.

Kovacs said the interest rate for IMF loans was 2.5 percent, 4 percentage points below the market rate, and added that in return the organisation may have expectations against its borrower.

Hungary is seeking a 2 to 3 year framework agreement in the range of 12-15 billion euros.

Hungary’s chief negotiator Mihaly Varga said earlier that parties at the talks could reach an agreement as early as November this year.

Fidesz Watcher

Does anybody seriously expect the IMF to lend billions of Forint to these clowns without any preconditions?
Liz Aucoin

I think that the satatement is meant to quash the bs Orban fed the people regarding the supposed demands the IMF had given the government regarding reducing pensions etc. It does state however, there will most likely be expectations in regards to the economy. I wouldn’t expect anything less.
Rolrox

I’m wondering if the IMF are so clueless to lend more money here. It’s like giving an alcoholic a bottle of whiskey thinking it’ll help him sober up.

The only reason why I cam see the IMF would lend money here would be so that HU continues to keep their interest rates high so that foreigners holding HUF notes aren’t driven to the exits as their investments would otherwise devalue.
Amercian in Budapest

Liz,

The IMF will have more than expectations. The IMF cut off funding to the Ukraine because the country refused to eliminate gas subsidies to households. The country imports much more natural gas than it needs due to dismal energy efficiency
Liz Aucoin

@american in Budapest, I understand what you are saying, but I do think they are trying to make it clear that the statements VO made regarding the “list of demands” they have made in order to resume funding talks is false. I don’t beleive Orban one bit when it comes to this list. Why would the IMF tell Hungary they need to cut pensions? The people have lost a large amount of their pensions already due to the changes he has already made. I think he is feeding Hungarians a bunch of lies to justify his next moves with regards to mismanagement of monies which belong to the Hungarian people! If there is any request regarding pensions it should be in regards to Government officials, dip into what they take home!