Hungary Refuses Further Austerity After IMF Talks End

Hungary’s government won’t impose further austerity measures even after falling out with its international creditors, Economy Minister Gyorgy Matolcsy said, expressing confidence a new loan agreement will “eventually” be reached.

The government, which faces local elections on Oct. 3, is committed to a tax on financial institutions for three years and seeks to raise 200 billion forint ($893 million) from the levy in 2010, Matolcsy said on M1 television today. “The alternative to the bank tax would be austerity measures which would restrain growth even more,” he said.