Hungary : Fourth Review Under the Stand-By Arrangement, and Request for Modification of Performance Criteria

This paper discusses key findings of the Fourth Review Under the Stand-By Arrangement for Hungary. All end-September 2009 quantitative performance criteria, the continuous performance criterion on nonaccumulation of external arrears, the indicative target on central government debt, as well as the continuous structural benchmark related to government lending to banks were met. Inflation in September breached the lower inner band of the inflation consultation mechanism. The structural benchmark on submission of legislation on strengthening the institutional framework for bank supervision was met with only a minor delay.