But the ultimate scale of the problem has been hard to predict and we did not expect the banks to be so persistently ineffective in getting their arms around this problem and delivering sustainable solutions. The best available sustainable solutions can take several forms.
Therefore we not only have to present sound and credible fiscal consolidation measures to the international institutions for approval, we also have to make sure that market participants find the fiscal path credible. Last, but not least, the return of market confidence gave the Magyar Nemzeti Bank the room to start reducing the key interest rates. Further positive news was coming from price developments.