Commission proposes financial assistance to Hungary

31 October 2008

The Commission formally proposed to grant financial assistance for Hungary's balance of payments and to raise the overall ceiling for providing medium-term financial assistance to EU countries' BoPs from €12 to €25 billion.

The Commission formally proposed to grant financial assistance for Hungary's balance of payments and to raise the overall ceiling for providing medium-term financial assistance to EU countries' BoPs from €12 to €25 billion.

 

Both proposals have been sent to Member States which are expected to endorse them at the ECOFIN meeting on 4 November.

 

The Hungarian financial markets came under severe stress as the global financial crisis deepened and broadened. Under the proposal Hungary will benefit of a medium-term loan amounting to a maximum of €6.5 billion, with a maximum average maturity of five years. The EU support is granted in conjunction with a loan from the International Monetary Fund of €12.5 billion. The World Bank has also agreed to contribute a loan of €1 billion.

 

Press release

 

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