EU to offer Hungary a 6.5 billion euro loan

The European Union signed on Thursday an agreement with Hungary for a 6.5 billion euro loan, as part of the IMF financial aid, a press release of the Hungarian Finance ministry informs, quoted by Reuters.

EU finance ministers approved the loan for Hungary in early November and, according to the press release, Hungary will be able to access the funds for two years, in four installments. Hungarian officials declared that the first installment will have to be made if Hungary has a budgetary deficit of 2.6%, as ruled by a bill passed in the Parliament. Moreover, the bill’s provisions offers the measures to be taken to support the objective.

The Hungarian government recently launched a plan of economic incentives to save the country from recession but the strict budgetary control does not allow new spending and the central bank warned that the economic recovery process will be slow.