Budapest, Hungary ? Hungary’s prime minister stunned the country Saturday by announcing his resignation because he had become an “obstacle” to the reforms needed to pull the country out of its worst financial crisis since the end of communism nearly 20 years ago.

Ferenc Gyurcsany, of the ruling Socialists, made the unexpected announcement at his party’s congress, saying he was keeping a pledge made in January 2008 to change the leadership if the embattled party’s popularity failed to recover.

“Support for us has not grown. On the contrary, it has diminished,” Gyurcsany said. “I propose forming a new government with a new prime minister.”

In the meantime, Hungary is struggling to deal with the global financial crisis, and has received $25.1 billion in loans from the International Monetary Fund and other institutions.