Hungary and the International Monetary Fund

[1] The country has had eight loan agreements with the IMF in the past, but most recently has received only Stand-by arrangements and currently has no outstanding payments.

The more liberal economy approach that has been introduced with the New Economic Mechanism in 1968, along with other reforms had resulted in a relatively higher standard of living, as compared to other Soviet-bloc states.

Hungary was unable to respond to the external shocks adequately, and the country's creditworthiness and appeal to foreign investors began to worsen.

High taxation and inefficiency in the public sector further damaged the Hungarian economy, leading to a significant, 10% deficit in the 1993-1994 GDP.

Furthermore, following a set of controversial reforms after his election, Hungary's prime minister Viktor Orbán has also asked for the closure of the IMF's office in Budapest.