The ratings on the Republic of Hungary are supported by: The government's continued commitment to structural reforms and market-oriented policies. These underpin Hungary's preparations for EU membership, which is expected no later than 2005. The development of a dynamic private sector and significant foreign direct investment (FDI) inflows have led to a remarkable diversification of the economy and supported robust export growth. The significant decline in the general government's debt burden, to an estimated 52% of GDP in 2002 from 62% in 1998. Interest payments have decreased to an estimated 10.5% of general government revenues in 2002, compared with 18.0% in 1998. Strong external indicators. Total net external debt is projected at 34% of current account receipts in 2002. External
