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Hungary on the road of transition

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Since 1968, Hungary has been playing a pioneering role in the eastern block in terms of its reform initiatives and, by the turn of 1989/90, it was already in the possession of several elements of the market liberalisation toolkit. From 1987, a system of commercial banking was re-established, with several foreign participants; the evolution of the private sector was supported by the Companies Act; the doors were opened for foreign direct investments, and trade had become largely liberalised. And in June 1990, the Budapest Stock Exchange launched operations, the first of its kind in Central and Eastern Europe.

 

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