Hope of an agreement between Hungary and the International monetary Fund has been rekindled by a government minister stating on a national television station that talks could resume in the second half of October. The timing of a potential meeting appears to take into account an upcoming IMF/World Bank gathering that begins October 9.
Hungary’s government has walked a balancing act between talking tough in front of the country’s population, while trying to soothe international investors who believe the country’s fiscal situation is in a perilous state. Progress on the talks faded after a July meeting between the two sides, despite comments from both sides that discussions had been constructive. The IMF worries that Hungary’s national deficit for 2013 will be twice that anticipated by current budget proposals.
