IMF to close representative office in Hungary

Source:Xinhua Published: 2013-7-16 8:25:01

The International Monetary Fund (IMF) said on Monday that it will not replace its representative in Hungary who is due to leave soon as the country seeks to repay loans early and close the IMF office.

"IMF Managing Director Christine Lagarde received today a letter from Hungary's Central Bank Governor Gyorgy Matolcsy informing her of the government's intention to initiate the closure of the IMF office in Budapest," said the IMF spokeswoman Angela Gaviria in a statement.

"As Ms. Iryna Ivaschenko's posting as resident representative in Hungary was due to end in late August and the IMF's presence in member countries is at the invitation of country authorities, the IMF will not seek to replace her. The IMF looks forward to continued cooperation with Hungary in the context of regular bilateral consultations as with other member countries," she added.

In the letter addressed to the IMF chief, the central bank governor said since the standby loan agreement between Hungary and the IMF is about to end, it was not necessary to maintain the IMF's representative office.

Hungary was the first European country to be bailed out by the IMF after the onset of the global financial crisis. In 2008, it received a rescue credit line of 20 billion euros (about 25 billion dollars) from the IMF and other creditors.

But Prime Minister Viktor Orban's government, which took office in 2010, tried to restore economic self-determination and avoid scrutiny from international creditors of its economic policies.

Posted in: Economy

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