Hungarian PM rejects IMF/EU terms for bailout loans

Hungarian PM rejects IMF/EU terms for bailout loans
# 06 September 2012 22:25 (UTC +04:00)
Baku-APA. Hungarian Prime Minister Viktor Orban Thursday afternoon rejected the conditions listed by International Monetary Fund/European Union for bailout loans on his Facebook page, APA reports quoting Xinhua.

The terms they request include pension cuts, retirement age hike, privatizing government properties, cutbacks on government staffs, introduction of real estate tax, apart from reduction on government spending and meansures on the banking front.

Negotiation for a precautionary loan would not go forward "at that price, in that way,"said Orban.

As the forint nosedived and the Budapest Stock Exchange sank, Orban announced over Facebook that the government was mapping out alternative proposal as basis for negotiations with the IMF/EU.

Meanwhile, the opposition socialist MSZP party accused Orban of being "duplicitously blaming the agreement with the IMF rather than his own tragic economic policy."

Speaking on Wednesday, Mihaly Varga, who is representing Hungary in talks with the IMF/EU as a minister without portfolio, said that Hungary could not get by without the loan. He called the loan an opportunity to improve the structure of the Hungarian economy.

Also speaking on Wednesday, Orban told the international media he expected the loan to be somewhere at 15 billion euros.

Analysts queried by wire service MTI said they expected the loan negotiations to go forward although it would be a while before any agreement was signed.