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Economic uncertainty prevents stipulation of euro-convergence date

Although adoption of the euro remains one of Hungary's primary objectives, present economic uncertainty makes it impossible for the government to stipulate a specific target date for euro convergence, Finance Minister Péter Oszkó said in an interview published in the Thursday issue of the business daily Napi Gazdaság.

Oszkó said that the government has only partial control over the factors that determine whether Hungary's economy is fit to adopt the euro. The finance minister noted that Hungary should begin to generate GDP growth again 2011, when the country is expected to meet the Maastricht criteria in terms of inflation and budget deficit.

Oszkó said that recent economic developments suggest that the government will be able to finance the central budget from market resources such as increased sales of government bonds and issue of foreign-currency-denominated securities rather than an extension of IMF credit. (MTI-ECONEWS)