Budapest - The International Monetary Fund (IMF) is to open an office in Budapest, the world's "lender of last resort" confirmed on Wednesday.

The office will facilitate discussions over the 15.7-million- dollar emergency loan granted to Hungary last October, the Hungarian newspaper Nepszabadsag had reported.

IMF press officer Angela Gaviria told Hungary's state news agency MTI that it is "normal" to set up such an office in a country that has a stand-by loan.

Hungary's loan was part of a 25-billion-dollar rescue package to which the EU and the World Bank also contributed.

The recipients of IMF loans are expected to meet very strict conditions with regards their public spending and overall monetary policy. (dpa)