Bloomberg News

IMF Yet to Decide on Resuming Hungary Negotiations, Reuters Says

December 28, 2011

Dec. 28 (Bloomberg) -- The International Monetary Fund has yet to decide on returning to Hungary for formal aid talks as the decision depends on the government engaging on key “policy issues,” Reuters reported today, citing an IMF official.

“Preparatory work on a program cannot continue until the government indicates it is willing to proceed on the basis of a Stand-by Arrangement,” Christoph Rosenberg, the Washington- based lender’s mission chief to Hungary, wrote in answers to questions from Reuters.

The IMF told the government in Budapest that given Hungary’s vulnerabilities, a Stand-By Arrangement with agreed conditionality would be best for the country, Rosenberg said, according to Reuters.

The government needs to “engage on policy issues that are relevant to macroeconomic stability,” Rosenberg wrote, adding that Hungary’s proposed central bank legislation and financial stability law need “close consultation,” Reuters said.

--Editor: Jeffrey Donovan

To contact the reporter on this story: Edith Balazs in Budapest at

To contact the editor responsible for this story: James M. Gomez at

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