Mihály Varga, Hungary’s chief negotiator, said the country may be able to repay its maturing debt next year. “If the international environment does not change, then we can certainly finance the national debt in 2013. We can still renew the maturing debt,” Varga said, adding that talks with the International Monetary Fund and the EU are still underway.
However, no official negotiations are taking place right now. Current talks are centered around how taxes are impacting the financial sector and whether the tax burden should be reduced. Varga said that an agreement with the IMF/EU would mean greater security for investors and could result in a lower risk premium for the state debt. However, Varga warned, it is extremely important what kind of agreement is reached.
