"Although Hungary continues to have problems, it is on the right track, said Domnique Strauss-Kahn, managing director of the International Monetary Fund (IMF)."I would not say everything is in order in Hungary, but the country is on the right track, Strauss-Kahn told Austrian daily Der Standard on Monday.
The IMF supported a comprehensive government programme in Hungary and Poland has drawn on a new facility, the so-called Flexible Credit Line that has calmed markets.
Elsewhere, the situation is more difficult, like in Latvia, Romania, Serbia, Belarus and Ukraine, he added.
In April, the IMF will propose the G20 summit to levy a tax on financial activities for two reasons, Strauss-Kahn said. Firstly, this way the financial sector would be discouraged from taking excessive risks. Secondly, the tax would help create funds in case the banking system would be in need of a bailout if another crisis hits."
Source: Portfolio Online Financial Journal
02.02.2010