The International Monetary Fund said today that it was prepared to start negotiations with Hungary's debt-laden government.
It moved to end a months-long standoff that had blocked fiscal aid to the country.
The IMF joined the European Union in seeking to rebuild ties, as long as conditions are met, after anger at Prime Minister Viktor Orban's encroachments on the independence of the judiciary, media and central bank.
"The Fund is ready to start negotiations as soon as adequate steps are taken to ensure central bank independence, as has been discussed with the Hungarian government," an IMF spokeswoman said.
In November, Hungary approached the EU and the IMF about a possible €15-20 billion stand-by credit line after its currency, the forint, plunged and the country's borrowing costs soared.
The IMF's positive signal came a day after the European Union gave Hungary a go-ahead for talks to resume on financial assistance.
Brussels said the country had taken sufficient action and commitments to enter into negotiations. Orban's center-right government had passed a raft of legislation that critics said increased state control over the judiciary, the media and the central bank.
The IMF spokeswoman said the global lender "welcomes recent progress" in Hungary's discussions with the European Commission.
