EU signs 6.5 bln euro loan for Hungary -ministry

BUDAPEST, Nov 20 (Reuters) - The European Union has signed an agreement under which it will lend Hungary 6.5 billion euros as part of an IMF-led package, the Hungarian finance ministry said in a statement on Thursday.

EU finance ministers cleared the loan for Hungary earlier this month.

The ministry said Hungary will have access to the loan for a period of two years and it can draw upon the loan in four parts.

"The condition for drawing on the first 2 billion euro tranche is a budget bill submitted (to parliament) for next year which targets a deficit of 2.6 percent of GDP, and contains the fiscal measures backing this target," the ministry said.

The loan, to be raised by the European Commission on capital markets, is part of an International Monetary Fund package of $25.1 billion for Hungary. (Reporting by Krisztina Than; editing by Chris Pizzey)