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Orbán: Deficit target is IMF's only expectation

Hungary will meet its deficit target of 3.8% of GDP in 2010, but this is the only concrete expectation which the country must fulfill under its agreement with the IMF, Prime Minister Viktor Orbán said on the sidelines of a meeting of Visegrád Four heads of government in Budapest.

How the country is to meet the target is exclusively a national responsibility, Orbán said.

The IMF and the EU suspended talks with the government on Hungary's financial aid package late Saturday.

National Economy Minister György Matolcsy said on Monday the missions from the IMF and EU supported the government's goal to meet the 3.8%-of-GDP deficit target for 2010 and bring the gap under 3% in 2011, but they did not approve of an extraordinary financial sector tax that is expected to generate HUF 200 billion in 2010.

“They don't like the bank levy, however, this HUF 200 billion of the bank levy will consolidate the Hungarian budget,” Matolcsy said.

Orbán told a journalist at the meeting on Tuesday that he did not wish to intervene in questions related to the markets.

“The markets ... will react as they react,” he said.

The prime minister added that there was only one thing markets would have to calculate with, and that is Hungary would fulfill its international obligation. (MTI – Econews)