Prime Minister Ferenc Gyurcsany met with central bank officials to discuss the country’s euro covvergence programme. Hungary must submit a modified convergence programme to the European Commission by September 1. The earlier programme was rejected by the Commission because it failed to detail measures Hungary planned to take to reduce its deficit. Central bank governor Zsigmond Jarai, said bank officials had raised doubts about the government's austerity package, warning that the tax increases could raise inflation and hurt Hungary's competitiveness. He added that the government's 2010 target to adopt the euro was untenable. Mr Gyurcsany responded that the government aims to balance the budget half way through its term, which would require a later date to join the eurozone.
Citigroup registered a net profit of $473 million from its operations in Mexico for the second quarter of 2006, up 4.0% on the previous year. Citigroup operates in Mexico through its subsidiaries Grupo Financiero Banamex, California Commerce Bank and Credito Familiar. Revenue was up 13% on the previous year to $1.4 billion, driven by growth in consumer loans and credit card transactions.
Philippines National Treasurer Omar Cruz reported that the budget surplus in June was 12.7 billion pesos (PHP). The budget deficit for the first half of the year was PHP 31.5 billion, compared to the target deficit of PHP 90.4 billion for the same period. Cruz said the lower deficit would allow the government to focus on development expenditure during the third quarter of the year.
The Reserve Bank of India reported that India's foreign exchange reserves reached $163.3 billion on June 7. India's reserve position with the International Monetary Fund stood at $765 million. The central bank attributed the increase in foreign exchange reserves to inflows to the stock market and a steady euro.