30 Oct 2008

$US25b rescue deal announced for Hungary

2:55 pm on 30 October 2008

Hungary has been granted a $US26 billion rescue package by the IMF, the EU and the World Bank to cope with the effects of the ongoing financial crisis.

It follows similar measures taken by the IMF to prop up the economies of Ukraine and Iceland.

The fund is also in talks with Pakistan and Belarus about loans to help them through the crisis.

The package includes $US16 billion from the IMF, $US8 billion from the EU and $US1 billion from the World Bank.

The BBC reports that Hungary, like other emerging markets, has been badly hit by what has been called the second wave of the financial crisis - a severe shortage of foreign currency.

The Hungarian forint has lost almost 20% of its value in the past month against the euro and the dollar.

Hungary has already borrowed more than $US100 billion from abroad.