Hungary has called down the equivalent of €4.9 billion in the first tranche of a €12.3 billion stand-by loan from the IMF, state secretary at the Finance Ministry Álmos Kovács said on Monday.
Although the money -- which is the equivalent of 4.22 billion Special Drawing Rights (SDRs), a unit of account of the IMF based on a basket of major international currencies -- was called down, it has not been used yet, Kovács said. The money is in a separate account at the National Bank of Hungary (MNB), he added.
Interest on the money called down is calculated daily according to a method published on the IMF’s homepage, Kovács said. Currently the rate is at an annual 2.71%. Hungary will pay 2.71% on the first SDR 2.076 billion, 3.71% interest on the second SDR 1.038 billion tranche, and 4.71% on the third and last SDR 1.099 billion tranche.
The IMF loan has a grace period of two years and one quarter after which the loan must be repaid within two years. The EU is expected to transfer the first tranche of a €6.5 billion loan promised to Hungary in December, Kovács said. The first tranche is expected to be €2 billion. The run of the loan will be three years and the rate is expected to be 3.9-4.1%. (MTI-Eco)