The European Central Bank (ECB) has agreed to offer the Government of Hungary up to €5 billion in loans, in an effort to minimize the negative impact of the international financial crisis in this emerging economy.

Hungarian officials would only resort to the €5 billion in available funds if euro liquidity is needed in order to calm nervousness among investors or protect the country’s banking system from the type of crash that loomed large above the United Kingdom and the Unites States.

It appears as though the deal between Hungary’s Socialist government and the ECB has already had a positive impact, only hours after the agreement was signed.

For example, the value of the Hungarian forint jumped by 2.44 percent against the euro, following the announcement. As such, one euro is now worth 266 forints.

Hungary’s Socialist Prime Minister, Ferenc Gyurcsány, also took what most observers agree was a wise strategic step in cementing confidence among foreign entrepreneurs and companies looking to invest in Hungary. Gyurcsány gave an interview to the Financial Times in which he observed that Hungary will take the first major step towards adopting the European Union’s common currency by joining the ERM II (the European Exchange Rate Mechanism) regime no later than in 2010 and possibly as early as next year.

This means that Hungary would likely adopt the euro in 2012. Financial experts agree that this announcement would help maintain confidence in the Hungarian economy and would portray Hungary as a stable country in which to invest.