Hungary govt says further austerity not an option

BUDAPEST, July 19 (BestGrowthStock) – Hungary’s government stuck to
its plans for a new financial sector tax this year and ruled
out further austerity measures at talks with international
lenders that were suspended at the weekend, the economy
minister said.

Gyorgy Matolcsy also told public television m1 in an
interview on Monday that International Monetary Fund and EU
representatives have voiced concerns over the 200 billion
forint tax and a bill which would put a ceiling on public
sector pay, including the central bank governor’s salary.

A review of Hungary’s 20 billion euro funding agreement
signed in Oct. 2008 fell through on Saturday after lenders
failed to get sufficient clarity of the new centre-right
government’s economic plans. [ID:nLDE66G0AP]
(Reporting by Gergely Szakacs; Editing by Kim Coghill)

Hungary govt says further austerity not an option