Hungary financial dispute hits forint / IMF and EU warn Hungary on credit facility

The European Union and International Monetary Fund cut short preparatory talks on financial support for Hungary on the 16 December 2011 after the government of Viktor Orban refused to delay a draft law that they warned could curb the central bank’s independence.

Officials who had been in Budapest for informal talks left the country on the night of the 15 December 2011, ahead of their scheduled departure the following day, sending Hungary’s forint sharply lower after news linked out on the 16 December 2011.

Critics have presented the draft law as the latest in a series of steps taken by Mr Orban’s government to weaken checks and balances on its power.

PressEurop, 19.12.11: IMF and EU slam door on Hungary http://www.presseurop.eu/en/content/news-brief/1306161-imf-and-eu-slam-door-hungary

ESO: Background information: Hungary calls for IMF assistance / IMF to offer Budapest help but with conditions http://www.europeansources.info/record/hungary-calls-for-imf-assistance-imf-to-offer-budapest-help-but-with-conditions/

IMF: Country Report: Hungary and the IMF http://www.imf.org/external/country/HUN/index.htm

EurActiv, 21.12.11: EU warns Hungary over Central Bank independence http://www.euractiv.com/future-eu/eu-warns-hungary-central-bank-independence-news-509858

Website: Magyar Nemzeti Bank (MNB): Central Bank of Hungary http://english.mnb.hu/

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