The board of the International Monetary Fund (IMF) approved a request by Hungary to extend the deadline for calling down the remainder of its SDR 10.5bn (EUR 11.7bn) standby arrangement until October 5, 2010 from the original deadline of March 2010, the Finance Ministry said in a statement on Friday.
Hungary intends to call down only SDR 50m (about EUR 54m) of the fourth tranche, originally planned at SDR 1.265bn (EUR 1.37bn), because of a relatively high level of central bank reserves and improving chances for financing from the market, the Finance Ministry said.
Hungary will be able to draw on the remaining SDR 2.901bn in the standby facility in four equal disbursements over the remainder of the extended arrangement.
The extension of the agreement was supported by a IMF delegation recently visiting Hungary for a regular review of performance preceding the drawdown of the next, fourth tranche of the loan.
The IMF loan is part of a EUR 20bn financial support package approved to Hungary last autumn, that also involved the EU and the World Bank.
Hungary has drawn around EUR 8.6bn of the IMF loan in three tranches. The loan was to be drawn in five tranches by March 2010. The fourth tranche, originally worth around EUR 1.5bn, could have been drawn by the middle of November.
Conflicting information hereabout regarding
Hungary’s financial well-being.
In truth IMF loans have made no difference to this
blessed country. Businesses close down, people loose their jobs, taxes are up through the roof,
homeowners struggle to meet mortgage payments,
the provinces are crumbling, agriculture is not
an option if you want to pay the bills, the
education and taxation need reforms, corruption
is widespread, the police force and legal system
are a joke, politicians from whichever end of
the spectrum are useless, and the whole rotten
system here in Hungary is imploding under a welter
of bureaucratic and government mismanagement.
Hungarian politicians are 10-times dumber than Romania’s Nikolai Ciaucescu ever was in the 1970s and 1980s when it comes to borrowing from the IMF and the World Bank.
And any little old Central American or large South American nation is 20-times smarter than the idiotic Hungo “leaders.” These Socie-Commie jerks still think that the IMPF and World Bank is here to actually HELP them!?
Or is it that realizing their ship has sunk, they figure, “hey, what the hell, let the next government worry about paying this 20 billion back?”
Taking all this tremendous mass of money as loans, and then have that dastardly clown G. Bajnai sit next to the internationally despised financial criminal George Soros in New York and announce to the wide world that Hunagry is soon to become “Europe’s powerhouse.” Wow!! No wonder that every single one of Hungary’s Carphatian Basin neighbors are ridiculing little ole’ poor, downtrodden Hungary, and will continue to leave the Hungos behind in the dust. Yeap, just about everyone is doing much better than certifiable basket case Hungary, a country that apparently wants to become a leader by borrowing itself to death.
@Persze, now kindly give us the BAD NEWS concerning Hunagry, Dear Sir. So far, you hadn’t said anytyhing shocking…
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There is no way Magyarorszag can pay back this loan. Impossible. So, the IMF and New York sheister banksters will steal what is left of hungary. All government facilities sold off. Balaton water rights to be confiscated; dont be surprised to see a water pipelinefrom Balaton to wherever the IMF deems appropriate. Austerity? You aint see nothng yet.
I agree with you Deng Feng….with tears in my eyes!
Géza/Deng Feng…You know its true and the blindman
is drowning in a sea of corruption and a never-ending list of political mistakes.
The commie clown Bajnai continues to roam the
globe and increasingly finds himself in the company of shysters, bandits, ne’er-do-wells, and other
assorted pickpockets.
The people of Hungary are suffocating and the oxygen is in short supply.
Ha ha, love it.Oxygen-Ozone. Ha ha.MORE!!!
Pun Man, you’re a stupid ass.