Hungary, which has a national debt worth 97 per cent of GDP, has been hit hard by the fallout of the financial crisis that stemmed from the collapse of the US subprime mortgage sector.
In exchange for the loan, Hungary must freeze public sector salaries and cut retiree bonuses.
Hungary is the second country this year to obtain an IMF loan to face the challenges of the financial crisis. Ukraine was awarded a loan of $US16.4 billion dollars on Wednesday.
Loans agreed with Iceland and Seychelles have yet to be approved by the IMF.
Businesses need to take fresh look at loan papers
World economy - is now the time to panic?
Banks may call back risky loans, even from good customers
