The Government is expected to present to Parliament the latest amendment to the Act on the National Bank of Hungary on Thursday, which Parliament may pass within two weeks, Mihály Varga told journalists on Wednesday.

The minister without portfolio also said that the Government had sent the European Commission, the International Monetary Fund (IMF) and the European Central Bank (ECB) letters to inform the international organisations of the amendment of the central bank legislation. Five letters were drafted in total; Prime Minister Viktor Orbán informed José Manuel Barroso, President of the European Commission, that he does not intend to nominate candidates either for the post of Vice-Governor of the central bank or for any further members of the monetary council. The Prime Minister also enclosed documents related to the proposed latest amendment to the central bank law and indicated that Hungary is seeking to secure a precautionary facility agreement.

Antal Rogán, Fidesz Chair of Parliament’s Economic Committee, sent a letter to Olli Rehn, EU Commissioner responsible for economic and monetary affairs, similar in its effect to the information sent to Mr Barroso concerning the members of the monetary council. Rogán informed the Commissioner that he likewise does not wish to exercise the power of nominating outside members to the monetary council on behalf of his parliamentary committee.

Additionally, on behalf of the Government, Mihály Varga, and András Simor, Governor of the National Bank of Hungary, sent communications to IMF Managing Director Christine Lagarde, Mario Draghi, President of the ECB and Olli Rehn with respect to the consultations conducted to date and the agreement reached. They also enclosed the draft of the latest amendment to the central bank legislation. „We have taken yet another step in order to get closer to the commencement of negotiations”, the Minister said in evaluation of the letters sent.

The chief IMF negotiator said he had already informed the resident representative of the IMF in Hungary of the planned new amendment to the central bank law at an informal meeting last week. However, this underwent some changes at the weekend, and he will therefore repeatedly inform the IMF representative of the latest version this week.

From among the most important content features of the new motion, the Minister highlighted that the latest amendment clarifies the powers concerning the management of information on the country’s foreign currency and gold reserves and those that are related to the strategic decisions of the monetary council and executive management, and also serves to incorporate the amendments to the new labour code into the central bank legislation.

In answer to the question of when the official IMF/EU negotiations may start after the passage by Parliament of the latest amendment to the central bank law, Mihály Varga said that „we are creating optimal conditions for the commencement of the negotiations within the shortest possible time; however, naturally, this also depends on our partners”.

Mihály Varga, chief of the negotiations to be conducted with the International Monetary Fund and the EU told MTI, the Hungarian News Agency, on Sunday that the Government will present to Parliament its latest proposal concerning the amendment of the Act on the National Bank of Hungary and will revoke the old one this week. According to his information, the new motion serves to incorporate the main changes which were identified by the task force comprised of experts from the Government, the central bank, the European Commission, the IMF and the ECB. The Minister said he informed his partners already at the time that Prime Minister Viktor Orbán will send communications to José Manuel Barroso and Mario Draghi to inform them that there will be no further nominations or appointments to the monetary council and the central bank management during the mandate of the current NBH management.

Antal Rogán, leader of the Fidesz Group in Parliament said on Monday that the Fidesz faction will initiate that Parliament pass the latest amendment to the central bank legislation next week in departure from the standard house rules.

(MTI)