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Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Secondary Navigation Top Stories Full Coverage Most Popular Photos Search Search: EU confirms huge loan to Hungary AFP - Wednesday, October 29 PARIS (AFP) - - The European Union confirmed on Wednesday that it was prepared to grant a 6.5 billion euro loan to Hungary, cautioning that the aid was linked to a "strong commitment" by the Hungarian authorities to set up an adjustment programme. In a joint communique released in Paris, the French presidency of the EU's Ecofin Council and the European Commission said the aid had been decided upon "in coordination with the IMF so as to strengthen the sustainability of Hungary's balance of payments." The statement said concrete details of the offer would be finalized shortly in consultation with the Hungarian authorities, adding: "We also back the IMF's request to the big financial institutions operating in Hungary to continue to give adequate financing to the economy." International Monetary Fund director Dominique Strauss-Kahn announced on Sunday that the fund had decided to offer Hungary assistance after "broad agreement on a set of policies" to be carried out by the Hungarian government, which are expected to include tight limits on government spending. Hungary has been hit hard by the financial crisis, with its currency the forint, stocks and bonds plunging and serious liquidity problems. Hungary's vulnerability is primarily due to large current account and budget deficits, an overvalued currency, a low stock of foreign reserves and a high level of short-term foreign currency debt, analysts say. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Enlarge Photo The Hungarian parliament building in the country's capital, Budapest. The European Union has confirmed that it is prepared to grant a 6.5 billion euro loan to the country, cautioning that the aid was linked to a "strong commitment" by the Hungarian authorities to set up an adjustment programme. Most Popular – Top Stories Viewed When men see red, they see hot: study World's fattest man weds friend's widow Desperate pleas end in despair as starlet's nephew found dead Markets rebound ahead of key US meeting Australian central bank intervenes as dollar falls again View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology

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