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Deficit target a subject of IMF talks in Hungary

An IMF delegation in Budapest is also discussing a review of the budget deficit with the Hungarian government, IMF Managing Director Dominique Strauss-Kahn said at a press conference in Vienna when asked by MTI, confirming a press report.

Business daily Világgazdaság reported that the government could raise its 2009 general government deficit target to 3.9% of GDP from 2.9% as a result of talks with the IMF delegation.

A change “of this size” was spoken about, Strauss-Kahn said, when asked about the press report by MTI.

The global economic situation has changed since the contract on the stand-by arrangement was signed; for this reason, the IMF asked the Hungarian government to review its program in light of the deeper recession and count on a bigger deficit target, Strauss-Kahn said. (MTI – Econews)