06 April 2013

HUNGARY: 08 April UPDATE: CBank Member Kiraly Resigns After Hurried Vote On $2.1 Billion Stimulus Plan.

     Controversial new central bank head Gyorgy Matolcsy didn't dally laying out a massive stimulus plan.
     But it was too much for deputy governor Julia Kiraly.
     She has resigned...3 months before the end of her term...after complaining she was given only 35 minutes to read the 40-page proposal...before a vote.
    She abstained from voting on the $2.1 billion plan.
    It offers no interest loans to small businesses...and 2% to middle sized firms.
    A normal business loan rate is at least 10%.
    The markets are worried about Matolcsy's high risk and unorthodox populist economic theories.
    Since assuming his position...he has dismissed 3 senior staff economists.
    He is a close ally of PM Viktor Orban.