The IMF said in a statement it had reached an agreement with
It is the biggest international rescue package for an emerging market economy since the start of the current global crisis and is the first for an EU-member country. Last week the IMF approved a $2.1 billion deal for
The IMF said its board could approve the
"The Hungarian authorities have developed a comprehensive policy package that will bolster the economy's near-term stability and improve its long-term growth potential," IMF Managing Director Dominique Strauss-Kahn said in a statement.
"At the same time it is designed to restore investor confidence and alleviate the stress experienced in recent weeks in the Hungarian financial markets," he added.
The IMF financing is more than 10 times
Strauss-Kahn said the program should improve
"Specifically, the package includes measures to maintain adequate domestic and foreign currency liquidity, as well as strong levels of capital, for the banking system," he said.
"Important measures in the fiscal area will reduce government- financing needs and ensure longer-term debt sustainability," Strauss-Kahn added.
Meanwhile, the World Bank said it was working with
"Proposed World Bank assistance would support the design and implementation of reforms in key areas, such as the financial sector, fiscal management, and social sector reforms," said Orsalia Kalantzopoulos, World Bank director for
"These measures would support the country's longer-term stabilization and economic restructuring," she added.