IMF, EU and World Bank pledge aid over 17 months to save nation鈥檚 economy

Hungary is to receive a $25bn (拢15.6bn) rescue package from the International Monetary Fund (IMF), the EU and the World Bank.

The package has been put together to bolster Hungary鈥檚 confidence and help it cope with the effects of the world鈥檚 economic downturn.

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The IMF said an agreement had been reached with Hungary for a loan programme worth $15.7bn (拢9.7bn), disbursed over 17 months. The EU and the World Bank are standing ready with additional finance of $8.1bn (拢5.0bn) and $1.3bn (拢800m), respectively.

The move follows similar measures from the IMF to aid the economies of Ukraine and Iceland. The funding body is also in talks with Pakistan and Belarus about loans to carry them through the crisis.

Dominique Strauss-Kahn, managing director of the IMF, said that the package is 鈥渄esigned to restore investor confidence and alleviate the stress experienced in recent weeks in the Hungarian financial markets鈥�.

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