Europe’s financial crisis is spreading east. Hungary has reached agreement with the International Monetary Fund and the European Union on a broad economic rescue package.
It will including substantial financing, to stabilise the Hungarian economy:
Full details, including how much is involved, will be announced later this week.
At a news conference, Hungary’s Prime Minister Ferenc Gyurcsany said: “The planned agreement with the IMF is to protect the interests of the Hungarian economy. This also shows the world that Hungary can rely on its allies in securing financial stability. I now have to find out which elements of the agreement with the IMF are supported by the various parliamentary parties.
Meanwhile Ukraine, which wants a crucial 13 billion euro IMF loan, is struggling to stay afloat amid a severe financial crisis.
In parliament various rival factions are trying to overcome their difference to reach agreement on laws to reform the country’s banks.
The IMF has made the loan conditional on the passage of the bank legislation.