Neighbor Hungary’s relationship with the International Monetary Fund (IMF) could perhaps be seen as the strict teacher and the cheeky badly behaved kid at the back of the class. And the story goes on: Hungary’s Prime Minister Viktor Orban (in picture) maintains that a deal will be made with the IMF, despite the Government rejecting the policy proposals set by the EU/IMF.
“Safety is worth very much to us, that’s why we need an IMF deal. I think it’s necessary, it will happen, we will strike a deal – but not on this basis.” Orban said in an interview with state-run Kossuth, quoted by business news service Bloomberg.
The international media reports that Hungary’s currency has slipped, after a period of strengthening. The Hungarian Forint has seen gains since the country’s government reached out to the IMF late last year and restarted negotiations for an EU/IMF credit line.
Orban’s government came to power on an anti-austerity ticket and implemented what has generally been described as “unorthodox” economic policy. Back in 2010, Orban’s government rejected the austerity terms set by the country’s IMF stand by agreement of 2008, opting for a “Hungarian Way” to create growth and get the country’s economy back on track. The government’s actions were widely condemned, by the EU, ratings agencies and commentators in general.