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Csányi: Hungary may be allowed a higher 2011 deficit

Hungary may reach an agreement with international lenders for a wider budget deficit in 2011 than the current target of 2.8% of gross domestic product, Világgazdaság reported, citing Sándor Csányi, chairman of OTP Bank Nyrt.

The compromise might be for a deficit target bigger than 2.8% but smaller than this year’s 3.8%, the newspaper said.

It would be justified for the International Monetary Fund and the European Union to treat the 2011 deficit target with more flexibility, Csányi said.

He added that he saw no reason for worry over the collapse of talks between the International Monetary Fund and the government and that there was time to reach an agreement until October, Világgazdaság reported. (BBJ)