Hungary Needs to Maintain Its Economic Policies, Matolcsy Says

Hungary needs to maintain its economic policies as it seeks a precautionary credit line from the International Monetary Fund, Economy Minister Gyorgy Matolcsy said.

“There’s no chance we will change our economic policy, there’s no need for that,” Matolcsy said in an interview on public television M1 late yesterday.

Hungary, which announced last week it wanted an agreement with the Washington-based lender, wants a “precautionary” credit line to use only if the European debt crisis “deepens much more than currently seen,” Matolcsy said.

Hungary may need to lower its economic growth forecast of 1.5 percent for 2012 as the government, the IMF and the European Union all agree that growth is the country’s “biggest risk,” according to Matolcsy. The government will wait for Germany to modify its growth outlook first, he said.

To contact the reporter on this story: Edith Balazs in Budapest at ebalazs1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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