SNAP ANALYSIS: Hungary's IMF deal - will it work?

BUDAPEST (Reuters) - The International Monetary Fund (IMF) says it has reached broad agreement on an economic rescue package for Hungary.

Analysts said the deal could boost sentiment in the short-term and may force the Hungarian government to implement further fiscal tightening and some structural measures to contain state spending.

Hungary turned to the IMF for help in order to help shore up its falling currency and financial markets and shield the country from the global financial crisis.

WHAT DO WE KNOW ABOUT THE DEAL?

* The IMF and the Hungarian authorities, in close consultation with the European Union, have reached broad agreement on a set of policies to bolster the Hungarian economy's near-term stability and improve its long-term growth potential. The program will ensure fiscal sustainability and strengthen the financial sector, the IMF said.

* A "substantial financing package" to support these policies will be announced when the program is finalized in the next few days, IMF chief Dominique Strauss-Kahn said.

* Participants will include the IMF, the EU and some individual European governments, together with regional and other multilateral institutions.

* The IMF's assistance, in the form of a stand-by arrangement, will be considered by the IMF's executive board for approval. The IMF said the policies Hungary envisages justify "an exceptional level of access to Fund resources."

* The size of the IMF package is not known yet.