IMF/EU Financial AssistancePrint
In order to relieve financing and liquidity tensions and to strengthen investors’ confidence, Hungary signed an exceptional international borrowing agreement in the fall of 2008. The USD 25 bn (€ 20 bn) financing package has been provided by the IMF, the EU and the World Bank.
- Hungary signed a SDR 10.5 bn stand-by agreement with the IMF on November 6, 2008, of which SDR 7.6 bn (€ 8.8 bn) has been drawn until now. Issues related to the stand-by agreement are coordinated by the MNB, which also acts as the fiscal agent.
- Parallel to the IMF agreement, a 2-year loan agreement has been signed with the European Union in the form of balance of payment assistance and in the amount of € 6.5 bn, from which € 5.5 bn has been drawn until now. This loan agreement expires in November 2010. Issues related to this agreement are coordinated by the Ministry of National Economy acting as the debtor of the loan.
- There has been an agreement in principle with the World Bank on September 22, 2009 about a € 1 bn loan for the purposes of helping the budgetary and financial stability reform programs of the Hungarian government, and supporting the sustainability of the financing of the pension system and improving the effectiveness of the health system. This agreement has not been signed yet.