Hungary: 2008 Article IV Consultation: Staff Report; Staff Supplement; and Public Information Notice on the Executive Board Discussion
September 24, 2008
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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, and 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.
Subject: 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
Pages:
46
Volume:
2008
DOI:
Issue:
313
Series:
Country Report No. 2008/313
Stock No:
1HUNEA2008001
ISBN:
9781451818093
ISSN:
1934-7685
