Brussels, 13/10/2008 (Agence Europe) - In a joint press statement published on Monday 13 October, the French Presidency of the Ecofin Council, and the European Commission gave a warm welcome to the, “readiness of the IMF to consider providing technical and financial assistance to the confidence and stability” of the country, which is currently confronting the fall-out effects of the financial crisis. At the end of last week, the Hungarian currency lost nearly 10% of its value before picking up again after intervention by the central bank. Analysts explain that the fall in the forint was due by a run on the banks provoked by investor panic. During a press conference on Monday 13 October, he Hungarian prime minister, Ferenc Gyurcsany, welcomed support from the EU and IMF and said that a first speculative attack had been beaten back but that his country still faced several challenges (especially budgetary).
The French Presidency and the Commission are committed to using “all available instruments with a view to supporting Hungary in steering its economy through this difficult period” particularly those in the treaty that allow for the accompaniment of possible IMF financial assistance. They also say that they want to ensure that “any conditions attached to possible IMF funding would be coherent and would provide support to the given economic policy advice advocated to the country in the European framework”. Hungary had a 9.2% deficit in 2006, which it succeeded in gradually reducing (3.6% in 2008). Budapest wants to get back under the 3% threshold in 2009, as recommended by the Council. The current situation, however, makes this goal unlikely. (A.B./transl.rh)