Agreements with the International Monetary Fund and the European Commission for a Protective Net for Hungary Hungary's financing must be ensured even if the crisis of the euro and the euro area deepens, causing increased uncertainty and disturbances in the financial markets. Under the changed international conditions, Hungary needs a protective net, and only the agreement to be concluded with the International Monetary Fund and the European Commission can provide such a guarantee. This was the precondition to avoiding incapacitation and to ensuring Hungary's financing from the market, Minister for National Development Tamás Fellegi pointed out at the government spokespersons' meeting on 8 December 2011.

The year 2011 saw a new wave of financial, growth and political crises, and further worsening of the situation is predicted in 2012 for the entire Europe. The euro crisis has an adverse impact on the economies that fall outside the euro area but have been completely integrated in economic and financial terms, like Hungary. This has its effects felt primarily in the market of sovereign securities and bonds, disproportionately increasing the cost of funds. "On the Prime Minister's initiatives, with an unanimous cast of the votes the Government commissioned me to lead the delegation conducting negotiations simultaneously with the International Monetary Fund and the European Commission", Tamás Fellegi stated.

In addition to the conduct of negotiations, this task, he added, included the creation and presentation of a negotiating position to the Government, laying the foundations of the stand to be taken, coordination of the negotiation background work, initiatives on the required government decisions and the verification of their implementation, as well as regular presentation of the Hungarian position to the background institutions of IMF and the European Commission, the governments of the countries delegating the key representatives, the analysts, credit rating and expert institutions and the priority investors operating in Hungary as well as their parent companies. The firs informal meeting was held on 7 December 2011 between Irina Ivashchenko, representative of IMF in Hungary and the Hungarian negotiating delegation.

Consultations will be continued next week. As head of the Hungarian delegation, Tamás Fellegi will visit, among others, London and have talks with the members of the British cabinet as well as leading London analysts and investors. Detailed discussions with the International Monetary Fund and the European Commission may start in early January.

The Minister considers his appointment to lead the IMF delegation as recognition of his work done so far, his negotiation experiences in economic and political relations and the achievements made so far. However, the tasks required by the negotiations to start in January, the management of the Ministry of National Development, and the three Government Commissions for Chinese, Russian and Ukrainian relations impose such workload and responsibilities that cannot be simultaneously undertaken and performed in a prudent manner. For this reason, following thorough deliberation, Tamás Fellegi requested the Prime Minister to initiate relieving him from his office at the President of the Republic. The Prime Minister will decide on the framework and powers assigned to Dr Fellegi after his week-end personal meeting with the minister.

(Ministry of National Development , Department of Communication)