FOREIGN DEBT, DEBT MANAGEMENT POLICY AND IMPLICATIONS FOR HUNGARY DEVELOPMENT

The article traces the internal and external factors causing the accumulation of debt since the 1970s which has resulted in Hungary becoming Eastern Europe's most indebted country in debt per effective capita terms. The article examines the various debt management approaches adopted during three distinct phases of debt accumulation. The author's main perspective is whether a new phase has begun, one with positive tendencies leading to diminishing debt stock. The author concludes that current improvements are temporary unless long term debt management policies are fully supported by all areas and instruments of economic policy. -C.Mailey