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Credit guarantees from Germany to Hungary

Germany on October 2 promised Hungary new loan guarantees worth up to 1 billion German marks ($710 million) to help finance the country's reform process, Hungarian newspapers reported the next day. The agreement was signed by Hungarian Prime Minister Gyula Horn and German Chancellor Helmut Kohl in Bonn, where Kohl reaffirmed his pledge to help Hungary gain membership in the EU and supported Hungary's restructuring and modernization plans. The credit agreement, granted to Hungary under very favorable conditions, is aimed at financing projects in transportation, environmental protection, and energy distribution and helping the Hungarian economy prepare for European integration. >Zsofia Szilagyi

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