The ratings on the Republic of Hungary are supported by: One of the most advanced and reformed economies among EU accession countries, reflecting its leadership in privatizing state enterprises and the banking sector, setting up market institutions and regulations, and establishing competitive and open markets. Hungary's success in implementing market-oriented reforms has enabled it to attract large foreign direct investment inflows, and supported a remarkable diversification of its economy and export structure. The government's moderate external indebtedness. General government net external debt, including forint-denominated debt held by nonresidents, is projected at about 23% of current account receipts (CARs) in 2004. Although increasing from 18% in 2003, Hungary's government net external indebtedness as a share of CARs remains comfortably below the
