Final instalment: no more debts to EU and IMF
Published at: 09/04/2016 03:03 pm
Hungary fully reimbursed European Commission loan. With this step, the Government has reached its goal of creating economic policy independence also in terms of state financing. Hungary has paid back the final, EUR 1.5 billion instalment of the $25 billion IMF-EU loan taken on by the country in the wake of the global economic crisis, the country’s Minister for National Economy has announced.
Mr. Mihály Varga said that the complete refinancing of the loan, which took place a week ago and has already been approved by the European Union, is hoped to serve the improvement of the country’s credit rating. H also stressed, that market actors are already more positive in their assessment of the country’s economic performance than large credit rating agencies. Mr. Varga said that it would be a kind gesture from IMF Managing Director Christine Lagarde to congratulate Hungary for the closure of the loan program, as she did it in the case of Cyprus.
Hungary’s former (liberal, left-wing) government turned to international creditors – the Troika of the EU, the IMF and the World Bank – as the country was hit by the global financial crisis back in 2008. Increasing the country’s room for manoeuvre in the field of economic policy through paying back the loan has been a priority of the second and third Orbán (conservative, right-wing) governments since 2010.