Hungary: 2008 Article IV Consultation: Staff Report; Staff Supplement; and Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, September 24, 2008
Source details
- Canonical URL
- Hungary: 2008 Article IV Consultation: Staff Report; Staff Supplement; and Public Information Notice on the Executive Board Discussion
Other formats
Bibliographic details
- Published: September 24, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451818093.002
Executive summary and key findings
- The Article IV Consultation highlights the financial system risks that have increased reflecting both the global financial market turbulence and continued rapid credit growth in Hungary.
- With most new borrowing in foreign currency, the private sector’s net foreign currency liabilities increased.
- Monetary policy has been appropriately tightened.
- The elimination of the exchange rate band has removed a potential conflict between monetary policy objectives.
- Executive Directors called for enhanced collaboration with foreign supervisory authorities given Hungarian banks’ close links with financial institutions abroad.
Risks and vulnerabilities
- Increased financial system risks due to:
- global financial market turbulence; and
- continued rapid credit growth in Hungary.
- Rise in private sector net foreign currency liabilities driven by most new borrowing being in foreign currency.
- Close links between Hungarian banks and foreign financial institutions, prompting calls for enhanced cross-border supervisory collaboration.
Policy assessment and recommendations
- Monetary policy response:
- Monetary policy has been appropriately tightened.
- Elimination of the exchange rate band removed a potential conflict between monetary policy objectives.
- Supervisory and regulatory recommendation:
- Enhanced collaboration with foreign supervisory authorities given the close links of Hungarian banks with financial institutions abroad.
Publication and document metadata
- Publication date: September 24, 2008
- Pages: 46
- Volume: 2008
- Issue: 313
- Series: Country Report No. 2008/313
- DOI: https://doi.org/10.5089/9781451818093.002
- Stock No: 1HUNEA2008001
- ISBN: 9781451818093
- ISSN: 1934-7685
- Subject tags: Banking, Exchange rates, External debt, Fiscal consolidation, Fiscal policy, Foreign exchange, Inflation, Prices, Public debt
- Keywords: CR, credit growth, deficit, Exchange rates, financial system, Fiscal consolidation, foreign currency, GDP, Global, Inflation, ISCR, output gap, percent of GDP, staff appraisal, tax, tax package
International Monetary Fund. "Hungary: 2008 Article IV Consultation: Staff Report; Staff Supplement; and Public Information Notice on the Executive Board Discussion", IMF Staff Country Reports 2008, 313 (2008), accessed 9/11/2026, https://doi.org/10.5089/9781451818093.002
Content in this bundle
- 1. Main Economic Indicators, 2003–09