## IMF Survey: IMF, EU, and World Bank Line Up $25 Billion for Hungary

_IMF News, October 28, 2008_

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## Bibliographic details
- Authors: Arrangement. The
- Published: October 28, 2008

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### Overview and context
- Publication date: October 28, 2008
- Joint financing package totals $25.1 billion to bolster Hungary's economy amid recent financial market turbulence.
- Package announced by the IMF, the European Union (EU), and the World Bank.
- The announcement followed earlier outline agreements on IMF financing for Iceland and Ukraine.
- IMF readiness and capacity:
  - IMF is a 185-member institution.
  - IMF has more than $200 billion of loanable funds and can draw on additional resources through two standing borrowing arrangements with groups of IMF member countries.

### Financing package composition
- IMF: ready to lend Hungary $15.7 billion (12.5 billion euro) under a 17-month Stand-By Arrangement.
  - The proposed package could be reviewed by the Board under the Fund's emergency procedures in early November.
- European Union: stands ready to provide a loan of €6.5 billion ($8.1 billion).
- World Bank: has agreed to provide €1.0 billion ($1.3 billion).

### Program objectives and core measures
- Main aims:
  - Restore investor confidence.
  - Alleviate stress in Hungarian financial markets.
  - Bolster near-term economic stability and improve long-term growth potential.
- Core measures:
  - Improve fiscal sustainability.
  - Strengthen the financial sector.
  - Secure adequate domestic and foreign currency liquidity for the banking system.
  - Ensure strong levels of capital for the banking system.
- Fiscal measures:
  - Important fiscal steps to reduce government financing needs and ensure longer term debt sustainability.

### Access and exceptional aspects
- The IMF characterized the level of access as exceptional:
  - Equivalent to around 1,020 percent of Hungary's quota in the IMF.
- Statement on shared responsibility and coordination:
  - Success of the policy package described as a shared responsibility between all stakeholders in the country and the international community.
  - IMF worked in close coordination with the European Union, the European Presidency, and the World Bank.
  - IMF commitment: "We will continue assisting the Hungarian authorities on how to adapt to the current global financial turmoil and to catalyze financing as needed," said IMF Managing Director Dominique Strauss-Kahn.

### Related operational notes
- The planned financing package for Hungary follows within days earlier announcements of tentative loan agreements with both Iceland and Ukraine.
- IMF is also in discussions with several other countries about possible new lending programs.

*Source: IMF Survey online, October 28, 2008.*

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## References

- [https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)
- [PRESS CENTER](http://presscenter.imf.org/)
- [IMF Country Focus](https://www.imf.org/en/news/country-focus)
- [IMF and Hungary](http://www.imf.org/external/country/HUN/index.htm)
- [IMF set for Ukraine loan](https://www.imf.org/external/pubs/ft/survey/so/2008/CAR102608B.htm)
- [IMF, Iceland in loan deal](https://www.imf.org/external/pubs/ft/survey/so/2008/CAR102408A.htm)
- [Countries in IMF loan talks](https://www.imf.org/external/pubs/ft/survey/so/2008/NEW102208A.htm)
- [IMF ready to lend quickly](https://www.imf.org/external/pubs/ft/survey/so/2008/POL100908B.htm)
- [World must act together](https://www.imf.org/external/pubs/ft/survey/so/2008/NEW101308A.htm)
- [Key issues: IMF lending](https://www.imf.org/external/np/exr/key/lending.htm)
- [borrowing arrangements](https://www.imf.org/external/np/exr/facts/gabnab.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/28/04/53/socar102808b_