Allocation of the sequent credit trench equal to 1.4 billion euro to Ireland has been confirmed by the International Monetary Fund. The country is receiving the financial aid after having suffered much from the financial crisis in 2009 within the framework of a three-year crediting programme.
One of the main conditions for providing the funds is implementation of the programme aimed at supporting the economy and the financial state of the country. According to assessments made by international agencies Ireland is successfully fulfilling the conditions of the agreement.
The economic situation in the country is improving visibly.
Hungary is expected to ask for support of the kind within the nearest future. Recently the international creditors have rejected the requests of the Hungarian government because of the new draft law, which was curbing the actions of the central bank. The authorities are ready to reconsider the legislation in favour of independence of the regulator’s decisions.
The second reason that prevented Hungary from getting the support was a huge budget deficit which exceeded the normal limits by 3% of the GDP. In accord to the last year forecasts this reading should have been revised in 2011 and be 6% of the GDP.
Now when the risks for the Hungarian economy have been eliminated, the country may well count on receiving the credit directed to protection from the EA crisis spreading. The investors’ confidence can improve as well.
