The European Commission and the International Monetary Fund said on Monday that they have received a request from Hungary for possible financial help as the country faces the threat of a possible rating downgrade as early as this month.

The Hungarian authorities have indicated that they intend to treat any EU and IMF support as precautionary, the two agencies said in separate statements.

The commission said it will examine the authorities' request in close consultation with EU Member States and the IMF. It also said the commission staff, who were carrying out a surveillance mission in the country over the last two weeks, have returned to Brussels. The mission conducted the post-program surveillance related to the first EU Balance of Payments assistance to Hungary. "The IMF team currently in Budapest will now return to Washington for consultations with the IMF's management and the Executive Board," IMF Managing Director Christine Lagarde said. "Discussions on the 2011 Article IV will be concluded at a later stage."

Last week, Hungary said it was seeking a precautionary credit line from the IMF. The announcement came after rating agency Standard & Poor's warned that it may cut the country's debt to 'junk' status. Placing the country's credit rating on negative watch on November 12, The firm said it will decide by the end of this month.

In 2008, Hungary had to seek financial assistance from the IMF as the country's banks were hard hit by the global financial crisis and high debt prevented any fiscal consolidation measures. The government led by Prime Minister Viktor Orban, which won elections last year, has always wanted to adopt unconventional policies.

Hungary does not need to change its economic policy, Economy Minister Gyorgy Matolcsy said in an interview to M1 television channel on Sunday. The country is only seeking a credit line that it can use in the case of the severe risk emerging from the further worsening of the Eurozone debt crisis, he said. The minister also said the IMF and the government agree on the risk that growth will be below target.

The Hungarian economy expanded at a slower pace in the third quarter. The annual rate of growth slowed to 1.4 percent from 1.5 percent. The statistical agency said that growth was driven by agriculture and industrial exports.

RTTNews