The Hellenic Radio (ERA): News in English, 10-06-05

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From: The Hellenic Radio (ERA) <www.ert.gr/>

CONTENTS

[01] G20 Focus on Financial Crisis

The G20 Finance Ministers meeting in Busan, S. Korea, centered on the causes that led to world markets and euro dive on Friday. Specifically they expressed concern at high deficits of European countries and committed themselves to reach soon an agreement on reforms of the world financial system. The European Central Bank chief Zean Claude Triche underlined the need for fiscal stability at world level while European Commissioner for Monetary Affairs Olli Rhen dismissed talk that Hungary was at the brink of bankruptcy.

Furthermore, European Commissioner Olli Rehn said "talk about Hungary's fiscal or debt default was wildly exaggerated".

Among others, the European top economy official said talk that Hungary was about to tumble into default was "wildly exaggerated" while he dismissed any comparison with Greece. Recent comparisons between Greece and Hungary are misleading", said Olli Rehn during a press interview.

Hungary has made serious progress in consolidating its public finances over the last couple of years. Now the Hungarian economy is on the way to recovery and has shown the first signs of strength in the first quarter of this year." He added its deficit has dropped by 5% of GDP from 2006-2009.

On his part,the head of the International Monetary Fund Dominique Strauss-Kahn expressed surprise at the talks about Hungary but refused to make any comments.

The Hungarian currency, the forint, fell against the euro, the Hungarian stock market plunged and CDS (credit default swaps) shot up after a series of ill-timed remarks on the economy by senior officials of the ruling Fidesz party that formed a center-right government a week ago.

Hungary had received a 20 billion euros aid from the IMF, ECB and the EU, in 2008 to avoid bankruptcy.

The head of the IMF will fly to Budapest on Monday to meet with the new government.

Sources: ÍÅÔ, ÍÅÔ 105.8, ÁNA-ÌPA News item: 37304

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