Colling
"Payroll, Financial Audit, Internet Accounting"
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IMF Credit Charges To Cost Hungary About EUR 500 m A Year |
 "Should Hungary full draw the International Monetary Fund's (IMF) EUR 12.5 billion stand-by credit, it will cost the country nearly HUF 140 billion (EUR 515 m) annually in charges between 2009 and 2014, the IMF's Staff Report, compiled in connection with Hungary's request for a stand-by arrangement, shows.One of the detailed tables of the 79-page document shows the schedule when Hungary may draw from the credit line and the timing and size of purchases and charges. Hungary was granted almost immediate access to EUR 4.9 bn (SDR 4.2 bn) after the agreement was reached. Further tranches may be called quarterly next year following the IMF's regular checks whether Hungary met the conditions to the credit.
One of the tables in the document shows that repayment of the credit will start only in 2012 and the biggest chunks will be repaid between 2012 and 2014. Before this period only charges are to be paid, the largest shares between 2009 and 2013. According to Portfolio.hu's calculations the payment of charges will cost Hungary HUF 137.5 billion (EUR 506 m) a year (using the current USD/SDR and USD/HUF exchange rates that add up to HUF 690 bn for five years.)
The table below shows the schedule of IMF reviews and Hungary's purchases of the IMF credit."
Source: Portfolio Online Financial Journal
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20.11.2008
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