Hungary and the IMF
IMF, Hungary Continue Dialogue; Camdessus Welcomes Measures
Michel Camdessus, the Managing Director of the International Monetary Fund (IMF) met with Hungary's Prime Minister Horn on Monday, June 5, 1995 to continue the dialogue begun in Budapest last Autumn. The discussions covered worldwide economic and financial developments, the recent economic policy initiatives of the Government of Hungary, and the influences of both global developments and domestic policies on the economic prospects for Hungary.
Camdessus welcomed the measures adopted in March, and now being reflected in the supplementary budget, as courageous and substantive. This package, implemented as envisaged, will arrest an incipient widening of the budget deficit and contain external financing requirements. The March package was seen as the first phase of a government program aimed at achieving a noninflationary growth path with external viability.
In the months ahead--starting with a visit to Budapest later this month--IMF staff will be working closely with the Hungarian authorities on the next phase of this program, to be formulated in the context of the preparation of the 1996 budget. For the period through 1996, the five chief objectives will be as follows:
Camdessus said he would be prepared to recommend to the Executive
Board that IMF financial support be provided for a government program
that would realize these objectives.
IMF EXTERNAL RELATIONS DEPARTMENT