ocr: Strengths Openness to foreign direct investment. By 1990, Hungary had attracted half of the foreign investment coming to Eastern Europe: $5 billion. Favorable tax regime, streamlined bureaucracy and new legislation permitting fully owned subsidiaries help to attract international business. Weakaesses Continuedlending by the banks to state-run and private firms regardless of crec a ditworthiness has led to a crisis in the bankng system. No plans to privatize banks. Downturn in overseas investment slowing privatization program. Profile The costs ofHungary's transition to a market economy have be ...
