Hungarian lawmakers on Thursday were poised to vote a substantial bank tax into law, against concerns expressed by the IMF and European Union (EU), days after talks between the government and the Fund broke down over its refusal to make more swingeing budget cuts.

Fidesz, the country's ruling party, has proposed a tax on banks' 2009 revenues to be paid in two instalments: by 10 September and 10 December this year. Under the proposal, lenders must pay 0.15% on the first Ft50 billion ($226m) of