BUDAPEST, Oct 2 (Reuters) - Hungary will finalise new legislation in a few weeks to strengthen financial markets watchdog PSZAF as an independent regulator and boost the central bank's powers to address systemic risks, an IMF official said.
Iryna Ivaschenko, the International Monetary Fund's (IMF) representative told Reuters in an interview on Friday the new legislation would be fully in line with recommendations of the IMF's technical mission.
Hungary, which had to resort to a $25.1 billion IMF, EU and World Bank financial package last year to avert meltdown, must improve its supervisory authority's independence and strengthen its institutional framework of financial regulation to meet the requirements of its programme agreed with the IMF.
"The legislation that is under way strengthens the supervisory system, using the current institutional set-up ... in line with the technical recommendations of the IMF," Ivaschenko said.
"But it's not really a small tinkering around the margins. It is significant strengthening (of supervision)," she said.
Ivaschenko said the strengthening of Hungary's financial supervision was in line with a similar EU-wide process. (Reporting by Krisztina Than and Marton Dunai; Editing by Dan Lalor)