IMF Statement on Hungary

Press Release No.10/234
June 9, 2010

Mr. Christoph Rosenberg, International Monetary Fund (IMF) mission chief to Hungary, visited Budapest June 7-9 for meetings with the authorities and issued the following statement today:

“Together with our colleagues from the European Commission we held useful discussions on the government’s policy intentions for 2010 and beyond.

“We welcome the authorities’ commitment to the fiscal target of 3.8 percent of GDP for 2010 agreed under the IMF-EU supported program, and their intention to implement corrective measures as needed to ensure that this target is achieved and that the Hungarian economy continues on a sustainable path.”

“These measures and other policies under the program will be formally discussed in the course of the next review mission, which is scheduled for early July 2010.”

Background:

The SDR 10.54 billion (about €12 billion) IMF Stand-By Arrangement with Hungary was approved in November 2008 (see Press Release 08/275) as part of a €20 billion international financial package, which includes a €6.5 billion contribution from the European Union.

The 17-month arrangement was extended to October 2010, with the disbursements under the program amounting now to SDR 7.64 billion (about €8.27 billion). The fifth review under the SBA was completed in March 2010 (see Press Release 10/110) and, as with the fourth review; the authorities did not draw the amount available.

For more information, please see Hungary and IMF on the IMF website.



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