Gov t decision not to renew IMF loan "justifiable", says Simor - paper
<p>Budapest, September 23, 2010 (MTI-ECONEWS) - National Bank of Hungary governor Andras Simor said he regretted losing the safety net offered by the country s IMF financial support package but added that the government s efforts to determine its own economic policy once again were "justifiable", speaking in an interview with French daily Le Monde published on Friday.</p>
Asked about the government s decision against making a new agreement with the IMF when the original contract -- signed in the midst of the financial crisis in the autumn of 2008 -- expires in October, Mr Simor said the cost of Hungary s borrowing would rise, but the country would no longer have to follow economic policies approved by the IMF and the EU.
"As a central bank governor, I can only regret the loss of the safety net. But the government s decision that it wants to freely determine economic policy is justifiable," Mr Simor said. "Turning down the safety net in itself means more rigour, discipline and transparency," he added.