The lending conditions for Hungary's €20 billion financial support package from the International Monetary Fund (IMF), European Union (EU) and World Bank have been modified as part of changes by the IMF to all of its lending agreements with countries in light of the financial crisis, the Finance Ministry said.
The ministry issued the statement after daily Magyar Nemzet reported the IMF had unilaterally extended the run of Hungary's loan. The IMF has announced modernized, more flexible lending conditions that are generally valid for all member countries that have taken out loans and relate to all contracts already signed within the framework of its response to the financial crisis,” the ministry said. Under the changes, decided on by the IMF board in March, the run of Hungary's loan was automatically extended by one year to five years with a three-year, three-month grace period.
Changes were also made to the stand-by fee and the interest margin system, although member countries may decide by August 1 whether they want to adopt the new interest margin system or keep the old structure.
The ministry said the changes to the conditions for the loan were favorable, adding it would decide in the coming days whether to adopt the new interest margin system or keep the old one. (MTI – Econews)