BRUSSELS (AP) — Hungary's currency slid against the euro yesterday after the European Union and the International Monetary Fund broke off talks on the country's bailout package, demanding bigger spending cuts.

Hungary must meet strict targets to reduce debt in return for a 20 billion euro ($26 billion) loan from the European Union, the IMF and the World Bank that it received in 2008.

The EU and the IMF said Saturday that Hungary isn't doing enough to slash spending or make long-term reforms to its economy — and that they would suspend talks to give the government more time to resolve "a number of open questions".

Markets reacted by sending the Hungarian forint to its lowest point against the euro since early June, trading at 290 forints yesterday from 282 on Friday.

EU and Hungarian officials played down the impact of suspension yesterday, with the European Commission saying there would be "no direct, immediate consequences" for the country.

Hungary's economy minister Gyorgy Matolcsy told CNBC that talks would resume in September.

He also said that the stability of Hungary's economy was not threatened by the delay and that "some uncertainty" in financial markets could remain until Thursday when parliament will vote on part of the government's economic plans.