IMF, EU and World Bank pledge aid over 17 months to save nation’s economy

Hungary is to receive a $25bn (£15.6bn) rescue package from the International Monetary Fund (IMF), the EU and the World Bank.

The package has been put together to bolster Hungary’s confidence and help it cope with the effects of the world’s economic downturn.

Credit: Maurice

The IMF said an agreement had been reached with Hungary for a loan programme worth $15.7bn (£9.7bn), disbursed over 17 months. The EU and the World Bank are standing ready with additional finance of $8.1bn (£5.0bn) and $1.3bn (£800m), respectively.

The move follows similar measures from the IMF to aid the economies of Ukraine and Iceland. The funding body is also in talks with Pakistan and Belarus about loans to carry them through the crisis.

Dominique Strauss-Kahn, managing director of the IMF, said that the package is “designed to restore investor confidence and alleviate the stress experienced in recent weeks in the Hungarian financial markets”.