Varga: Hungary fully repaid 2008 IMF-EU loan

MNB

Hungary has fully repaid loans it took out in 2008 from the International Monetary Fund (IMF) and the European Union and the World Bank. The last €1.5 billion installment was paid last week, National Economy Minister Mihály Varga said today, according to Hungarian news agency MTI.

Hungaryʼs National Economy Minister Mihály Varga gives a press conference in his ministry today. (Photo: MTI/Zsolt Szigetváry)

Varga hopes that the repayment of the loan will improve Hungaryʼs standing among credit rating agencies. The minister said that financial investors now have a better opinion of Hungaryʼs economic performance than big credit rating agencies. 

According to Varga, it would be favorable if Christine Lagarde, the Managing Director of the IMF would congratulate Hungary on its debt repayment. 

The €1.5 bln installment in question was due to be repaid to the European Commission as Hungary already repaid the outstanding balance of its IMF loan in November 2013. 

In 2008, Hungary reached an agreement with the IMF, the EU and the World Bank on an economic rescue package to help the country bolster its economy in the face of the global financial crisis. 

The IMF offered Hungary a €12.5 bln loan, the EU a €6.5 bln loan and the World Bank a €1 bln loan.

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