On the other hand, by designing a medium term path towards sustainable fiscal and external position, helped significantly to increase the credibility of the fiscal tightening measures announced by the government. In short, we needed two things, funding and credibility and the international institutions could help us with both.
With the help of the package we could manage the roll-over risk of the Hungarian economy, and at the aggregate level there was no capital outflow from the banking sector, foreign investors only withdraw capital from the government securities market. In the subsequent months the focus of policy makers shifted towards the real economy.