Economy
Hungary needs new 2010 budget, new loan deal with IMF next year - Matolcsy
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Matolcsy, a former economy minister who is a top economic strategist of the main opposition party Fidesz, told InfoRádió on Wednesday that the cabinet will need to create a new budget immediate after general elections next spring.
“This budget is fundamentally flawed. It is built on lies," Matocsy said.
It cannot be projected now where the global and the local crisis will evolve to by the middle of next year and it is also a mystery “what skeletons will fall out from the government’s closet", he said. This way there is no way to say how large budget deficit Hungary will have in 2010.
What Fidesz does know is that the 3.8% of GDP deficit the current cabinet targets in the 2010 budget cannot be achieved, Matolcsy said.
He also said that Hungary “should have a new credit agreement" before the IMF-led USD 25.1 bn credit facility expires on 5 October, because “the crisis will be not over by then".
“[...] the crisis will certainly not be over in Hungary by the end of 2012 therefore we need financial market stability," he concluded.
“This budget is fundamentally flawed. It is built on lies," Matocsy said.
It cannot be projected now where the global and the local crisis will evolve to by the middle of next year and it is also a mystery “what skeletons will fall out from the government’s closet", he said. This way there is no way to say how large budget deficit Hungary will have in 2010.
What Fidesz does know is that the 3.8% of GDP deficit the current cabinet targets in the 2010 budget cannot be achieved, Matolcsy said.
He also said that Hungary “should have a new credit agreement" before the IMF-led USD 25.1 bn credit facility expires on 5 October, because “the crisis will be not over by then".
“[...] the crisis will certainly not be over in Hungary by the end of 2012 therefore we need financial market stability," he concluded.
