Hungary may consider new IMF credit line - report

Published 10/08/2010, 04:42 AM
Updated 10/08/2010, 04:48 AM

BUDAPEST, Oct 8 (Reuters) - Hungary's economy minister and central bank governor may explore the idea of setting up a new precautionary credit line in talks with the International Monetary Fund in Washington, the daily Magyar Nemzet reported.

Hungary's talks with the IMF on reviewing a 20 billion euro ($26 billion) deal, which saved the country from financial meltdown in 2008, collapsed in July. Budapest has said repeatedly that it would not seek a new programme when the current one expires this month.

But the paper, which did not name its sources, said on Friday that Economy Minister Gyorgy Matolcsy and central bank Governor Andras Simor would seek information about a new type of IMF credit line created in August.

The paper added, however, that the Economy Ministry had firmly denied that this would be the case.

Press officials for the central bank and the economy ministry could not immediately comment on the report.

The central bank has said a new agreement could be useful as a safety net should global markets turn sour. (Reporting by Gergely Szakacs; Editing by Hugh Lawson)

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