Hungary plans €15bn loan deal to bring it back from the brink
HUNGARY is seeking billions of euros in international loans over three years to stabilise its economy, a senior official said yesterday, blaming the IMF and EU for delays in starting aid talks.
Central Europe’s most indebted nation needs a precautionary loan to rein in borrowing costs and prevent further cuts to its credit rating, which has been driven down to junk status by its high debt and by financial and legislative reforms that have been criticised by businesses and policymakers abroad.
“We need to create a package that is largely in line with market expectations,” state secretary Mihaly Varga told broadcaster TV2 in an interview.
“We should sign a three-year precautionary deal, which would be worth around €15bn (£12.1bn). I think by and large this is what we will be able to agree on.”