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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (47248)	3/8/2009 3:14:06 PM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 219713

Hungary Ctrl Bk:Ready To Channel EU Funds To Mkts BUDAPEST (Dow Jones)--Hungary's Monetary Policy Council stands ready to use all available tools - and will start to channel European Union funds to financial markets - in order to bring market developments in line with Hungary's economic outlook, the Hungarian central bank said in a statement Sunday. National Bank of Hungary spokeswoman Nora Hevesi told Dow Jones Newswires Sunday that it will release technical details of its plan to channel E.U. funds to the markets, at a later date. The Hungarian forint weakened to an all-time record against the euro Friday after the central bank and banking supervisory authority PSZAF denied rumors that Hungarian banks were to freeze deposits March 13. Hungary receives E.U. support in euros. The conversion of those funds on the open market will provide additional liquidity for the currency market. The step, which are expected to be very similar to Poland's recently launched practice of converting E.U. funds on the open market, are likely to strength the Hungarian currency, based on the measure's impact on the Polish zloty. The central bank reiterated in Sunday's statement that the Hungarian banking system is stable despite the forint's recent sharp depreciation, and that the forint's fall isn't justified by Hungary's economic fundamentals. It also noted that foreign parents of Hungarian retail banks have been providing financing to their Hungarian subsidiaries. However, the devaluation pressure on the forint will, in the medium term, negatively affect the retail banks' capital status, the MPC added. If the devaluation persists, a weaker forint would risk the attainability of the central bank's 3% inflation target, due to higher import prices, inflation expectations and other indirect factors, the MPC said. Central bank Web site: www.mnb.hu -By Margit Feher, Dow Jones Newswires; +36-20-925-2364; margit.feher@dowjones.com