"Hungary's Prime Minister Gordon Bajnai has warned against being overconfident about the forint's strengthening. He said there would probably be further fluctuations as uncertainty on the markets remained high.In an interview with InfoRádió, Bajnai said confidence in Hungary is growing, in his view.
“I believe policymakers and the markets feel that Hungary has understood what the crisis is about and is going to carry out those painful short-term measures that will shape up the economy," the PM said.
“The improvement in the global environment is most likely contributing to the forint's strengthening, but we should not be overconfident. I did not expect such a strong recovery in confidence in such a short time and there could be fluctuations since the markets remain greatly uncertain," Bajnai added.
“If we continue to do consistently what we need to do, I expect the forint to stabilize within six months, along with foreign currency lending and jobs. But it will take several more months of hard work and tough decisions in order to achieve that [...]", as the first steps the cabinet has taken were sufficient only for a preliminary confidence.
“The (forint's) exchange rate can depreciate at any time," he warned, reiterating that this presses the government to remain on the path set to restore confidence and foster the economy.
Discussions about the 2010 tax law begin next week. The PM said leaves the door open for unions, as well and the only think he is not willing to discuss is how to soften up the programme.
“I refuse to discuss how to soften up the core of the programme. If we did that we would lose the aforementioned confidence. We have been given a clear message from the market and the investors."
Source: Portfolio Online Financial Journal
11.05.2009