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ICEG projects gov’t debt to peak at 67% of GDP

Economic research center ICEG expects Hungary's level of government debt to rise to 67% of GDP by the end of 2007 before falling back to 60%, the Maastricht criterion, within a few years, director Pál Gáspár told the press on Tuesday.

GDP is expected to fall due to the government's planned fiscal adjustments, and rising interest rate expenditure will make financing more expensive, he said. According to ICEG, the ratio of government debt to GDP will rise to 63.5%-64% as a result by the end of this year, and it will rise further in 2007.