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| Version 0 | Version 1 |
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| Hungary to get $25bn rescue deal | Hungary to get $25bn rescue deal |
| (about 8 hours later) | |
| Hungary has been granted a multi-billion dollar rescue package by the IMF, the EU and the World Bank. | Hungary has been granted a multi-billion dollar rescue package by the IMF, the EU and the World Bank. |
| The deal, worth $25bn (£15.6bn), is intended to help Hungary cope with the ongoing effects of the global financial crisis. | |
| It follows similar measures taken by the IMF to prop up the economies of Ukraine and Iceland. | It follows similar measures taken by the IMF to prop up the economies of Ukraine and Iceland. |
| The fund is also in talks with Pakistan and Belarus about loans to help them through the crisis. | The fund is also in talks with Pakistan and Belarus about loans to help them through the crisis. |
| The package, which includes $16bn from the IMF, a further $8bn from the EU and $1bn from the World Bank, far exceeds the $16.5bn (£10.4bn) loan offered to Ukraine on Sunday. | The package, which includes $16bn from the IMF, a further $8bn from the EU and $1bn from the World Bank, far exceeds the $16.5bn (£10.4bn) loan offered to Ukraine on Sunday. |
| IMF Managing Director Dominique Strauss-Kahn said it was "designed to restore investor confidence and alleviate the stress experienced in recent weeks in the Hungarian financial markets". | IMF Managing Director Dominique Strauss-Kahn said it was "designed to restore investor confidence and alleviate the stress experienced in recent weeks in the Hungarian financial markets". |
| Mr Strauss-Kahn said the package included measures to maintain "adequate domestic and foreign currency liquidity, as well as strong levels of capital, for the banking system". | Mr Strauss-Kahn said the package included measures to maintain "adequate domestic and foreign currency liquidity, as well as strong levels of capital, for the banking system". |
| "These strong policies justify the exceptional level of access to Fund resources - equivalent to around 1,020% of Hungary's quota in the IMF - and deserve the support of the international community," he said. | "These strong policies justify the exceptional level of access to Fund resources - equivalent to around 1,020% of Hungary's quota in the IMF - and deserve the support of the international community," he said. |
| Foreign debt | Foreign debt |
| The BBC's Central Europe correspondent, Nick Thorpe, says Hungary, like other emerging markets, has been badly hit by what has been called the second wave of the financial crisis - the severe shortage of foreign currency. | The BBC's Central Europe correspondent, Nick Thorpe, says Hungary, like other emerging markets, has been badly hit by what has been called the second wave of the financial crisis - the severe shortage of foreign currency. |
| The Hungarian forint has lost almost 20% of its value in the past month against the euro and the dollar. | The Hungarian forint has lost almost 20% of its value in the past month against the euro and the dollar. |
| The country has already borrowed over $100bn from abroad. | The country has already borrowed over $100bn from abroad. |
| The European Commission said the rescue package depends on Hungary making a strong commitment to intensify efforts to cut its current account deficit. | The European Commission said the rescue package depends on Hungary making a strong commitment to intensify efforts to cut its current account deficit. |
| Meanwhile the World Bank has said it will support the implementation of reforms in areas such as the financial sector and fiscal management. | Meanwhile the World Bank has said it will support the implementation of reforms in areas such as the financial sector and fiscal management. |
| "These measures would support the country's longer-term stabilization and economic restructuring," said Orsalia Kalantzopoulos, World Bank director for Central Europe and Baltic countries. | "These measures would support the country's longer-term stabilization and economic restructuring," said Orsalia Kalantzopoulos, World Bank director for Central Europe and Baltic countries. |
| Last week, the Hungary's central bank raised interest rates by three percentage points to counter a sharp fall in the value of the forint but the effects were not expected to be long-lasting. | Last week, the Hungary's central bank raised interest rates by three percentage points to counter a sharp fall in the value of the forint but the effects were not expected to be long-lasting. |