Yesterday, the IMF confirmed that its authorities had reached a broad agreement outlining the policies to be adopted by the Hungarian government that would be aimed to “bolster the Hungarian economy’s near-term stability and improve its long-term growth potential.” The IMF also acknowledged that representatives from the EU were also participating in the ongoing discussions regarding the financial assistance package. While the terms and conditions of the agreement still remain undisclosed, Mr. Dominique Strauss-Kahn, the Managing Director of the International Monetary Fund stated, that “[a] substantial financing package in support of these strong policies will be announced when the program is finalized in the next few days.”

The financial package, which will be “in the form of a Stand-By Arrangement,” still remains subject to approval by the IMF’s Executive Board pursuant to the current expedited procedures.

Last week, the IMF acknowledged hat it was also in talks with Iceland, Pakistan, Belarus and Ukraine. Since that time the IMF has pledged financial support to the governments of Iceland and Ukraine.