IMF and the EU suspended talks on the financing agreement with Hungary / Analysts expect a depreciation of the Forint 

IMF and the EU suspended talks on the financing agreement for Hungary, agreed in 2008 to save the country from the financial crisis and said that the Budapest government needs to take tough measures to cut budgetary deficit, Reuters informs.

By suspending talks, Hungary will not have access to a 25.1 billion dollar financing. IMF and EU negotiations should have ended next week. Analysts said that the Foring might suffer a depreciation on Monday due to uncertainties related to Hungary’s financing possibilities.

The new center-right government that took over power after the April elections said that he wants to extend the current agreement until the end of 2010 and then sign a precautionary agreement for 2011 and 2012.