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EU and IMF break off talks with Hungary on aid deal due to new law seen impairing central bank
BUDAPEST, Hungary (AP) ' The European Union and the International Monetary Fund have broken off preliminary talks with Hungary on a financial aid package because of concerns about the government's intentions to curtail the independence of the country's central bank.
A spokesman for EU Monetary Affairs Commissioner Olli Rehn said Friday that the EU decided to break off the talks "in close coordination with the IMF" after the government gave no indications it would change the central bank law, which is being debated in Parliament.
Amadeu Altafaj Tardio says in a statement that the EU and the IMF wanted to discuss the law during formal negotiations with Hungary, expected to start in January.
In a policy U-turn, Hungary said in November that it would seek new IMF-EU support.