The ratings on the Republic of Hungary are supported by: The government's continued commitment to structural reforms and market-oriented policies. This has enabled Hungary to attract large foreign direct investment (FDI) inflows and supported remarkable diversification and development, making the economy one of the most competitive in the region. The government's moderate external indebtedness. General government net external debt is projected at 17% of current account receipts in 2003, including forint-denominated debt held by nonresidents, which accounts for some 40% of the government's total external debt. Solid external liquidity ratios. Reserve coverage of the current account deficit plus long- and short-term principal repayments is projected at 100% in 2003, with reserve coverage of short-term debt at more than 200%. The
