“A supporting plan of substantial financing of the strong policies will be announced once programmed finalized, in the very next days”, announced to Sunday the managing director of the IMF, Dominique Strauss-Kahn. ( Finance Information City )
The official statement of the IMF does not detail the extent of the support plan but specifies that it will engage, in addition to the Funds international currency, the European Union, certain European governments as well as regional or multilateral institutions.
The objective is to reinforce the Hungarian economy in the medium term and to improve its long-term growth potential.
Confronted with the massive withdrawal of the foreign investors, with the dive of his currency, the forint, and with the interrogations on the capacities of financing of the Hungarian banks, Hungary called upon an financial aid external of the IMF and European Central bank. Budapest negotiates since the beginning of October with the IMF.
The Hungarian problem lies in the strong dependence of its jumps of the Treasury at the foreign investors and in the imbalance of its finances.
Of source close to the Hungarian government, one estimated Sunday evening that the program negotiated with the IMF was “of a convincing size and a force”.
“Of the discussions to the more high level carried out these 24 or 48 last hours made it possible to raise all the significant obstacles, and the parts hope to be able to sign an final agreement in the week to come”, said this source at Reuters.
The agreement would reduce in particular the exposure of Hungary to the financing by the exterior markets by giving him access to emergency resources. “The policies whom Hungary considers justifies an exceptional level of access to the resources of the Funds”, said Strauss-Kahn.
The IMF in parallel arrived to an agreement in principle on the granting of a loan stand-by of 16,5 billion dollars to the Ukraine and to a plan of assistance at Iceland 2,1 billion dollars.
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