RTTNews - The International Monetary Fund on Tuesday agreed to disburse the next tranche of EUR 1.4 billion or USD 1.9 billion to Hungary under a stand-by arrangement approved on November 6, 2008.
The latest decision will bring the total disbursements under the programme to about EUR 8.4 billion or USD 11.7 billion.
The stand-by arrangement of EUR 11.7 billion or USD 16.2 billion entails exceptional access to IMF resources, amounting to 1,015% of Hungary's quota.
First Deputy Managing Director and Acting Chair of the IMF, John Lipsky said, Weaker than expected external demand and tighter external financing conditions exacerbated the recession in Hungary.
Lipsky said a further strengthening of investor confidence and a corresponding easing of financial strains would create room for interest rate cuts in the country.
He added that Hungary's monetary and exchange rate policy will continue to target inflation over the medium term.
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