the deflation policies first enacted in 1929 and 1930 meant to assist the government in rebalancing the budget were finally achieved in 1936/37. on july 7, 1937, "the times" reported that hungary had reached an agreement to pay interest on long-term non-state debts, which had been suspended since 1931 with over 65 loans falling under the terms of this new debt offer. the resumption of payments came after signs of a recovering economy. the revival of the economy was due largely to the controls set on inflation and a bilateral trade agreement signed with germany in 1934. the agreement gave hungary a secure market for its wheat exports along with prices which made selling to germany more advantageous to hungary than selling the wheat on the world market.