The Hungarian Legation to the Department of State
The Hungarian Government’s financial program provided for one year beginning the 23rd of December 1931.
The League of Nations loan will be paid in foreign currency as before.
The first category—composed of long term loans assured by special securities, for instance the Government Treasury Bonds issued in 1931, and those which are based on international conventions, for instance, the Caisse Commune payments, to the extent that foreign currencies are available.
The second category is composed of long term loans which do not belong to the first category.
These will be deposited in the National Bank of Hungary in Hungarian currency (pengoes).
The Hungarian National Bank in accordance with the League of Nations Councilor will administer these sums and consult the representative of the creditors appointed by them.
As far as short term loans are concerned, in case commercial business makes it necessary, debtors will be provided with the necessary foreign currency to enable them to pay interest.
The Government’s intention is to reach six months “Stillhalte” agreements for short term loans.