Hungary (Eastern Europe regional) sector grant assistance

USAID will provide the Government of Hungary (GOH) with $10 million, tied to conditionality under the Structural Adjustment Loan (SAL) recently negotiated between the GOH and the World Bank. Grant funds will be used for imports of U.S. raw materials, spare parts, and intermediate and capital goods needed by Hungary"s productive sector. An equivalent amount in local currency funds will be commingled with GOH funds to provide one-time support to low-income families hardest hit by SAL energy price reforms. TA to help implement the reforms will be funded separately. The grant will be disbursed in a single tranche and will support SAL policy reform measures to, inter alia, eliminate remaining state budget subsidies for energy, liberalize prices for coal, implement new tariff structures for electricity, and increase household energy prices to the level of economic costs by 1993.