Hungary Needs IMF Agreement to Stabilize the Forint, Confidence, OECD Says

Hungary needs to reach an agreement with the International Monetary Fund and the European Union on financial aid as such a deal is “a necessary first step” to stabilize the forint and restore market confidence, an executive at the Organization for Economic Cooperation and Development said.

Hungary, which faces an economic contraction of 0.6 percent this year, needs “credible and predictable short-term domestic policies,” Andrew Dean, director at the OECD said at a press conference in Budapest today.

The government relies “too much on one-off fiscal measures, Dean said, adding that teh Cabinet should focus on cutting expenditures and consider property and environmental taxes.

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