Hungary's present financial position is stable and predictable, and provides a good basis for the government to continue the restructuring and to kickstart economic growth, Prime Minister Viktor Orban said on Wednesday. Speaking about the prospects of future strong economic cooperation within the EU, Orbán said Hungary's financing needs could be met without the IMF.

Addressing meeting presenting the concept for the New Széchenyi Plan in Budapest to enterpreneurs, Orbán said "we have averted the danger of a collapse of the budget through the action plan". He said the country is in a relatively stable position, therefore there is a possibility for an economic reconstruction. Prime Minister Viktor Orban said the economy must be rebuilt because it has been destroyed.

The prime minister said it shows the stability of the economic situation that the suspension of the talks with the IMF and the subsequent downgrades only resulted in temporary disturbances. Following these disturbances, however, both the forint rate and "bond issue and bond sale capacities will return to the level where the country's operation can be regarded as stable", he said.

There could be further downgrades in the pipeline, but the disturbances are only temporary, Orbán said, adding that it is worth to continue the current policy.

The recently enacted banking tax is big and painful but is justified and necessary considering the burden the country had to bear.

The prime minister said that Hungary will keep to the targeted 3.8% of GDP deficit.

"We will have to create the most efficient (state) administration of Europe", including the most transparent budget of the continent, he said. (MTI-ECONEWS)