The law governing the Hungarian Central Bank finally satisfactory

2^nd July 2012

The latest modifications to the Hungarian law governing the Central Bank are moving in the right direction to guarantee the institution's greater independence, said the ECB on 29th June 2012 although it is cautious about some remaining issues. Budapest needs the ECB's approval, likewise that of the IMF to earn a line of credit totalling 15 billion euros as a guarantee to be able to borrow on the bonds markets at bearable rates. The ECB believes that the amendments included in the new version of the law "clarifies the procedure governing the dismissal of members of the monetary council" thereby aligning according the procedure planned for by the 17 central banks in the Eurosystem and the ECB. Moreover the new text no longer obliges the central bank to submit the monetary council's agendas to the government likewise the right for a government representative to sit in on its meetings. It no longer includes the dissolution of the monetary council when Hungary adopts the euro. According to the ECB Hungary has now "calmed the greatest concerns regarding the MNB."

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