ALARMING STATE DEBT INCREASE

Since last May the state debt of Hungary has increased by HUF 1187 billion, according to the recent report of the Ministry of Finance. This year almost HUF 900 billion has to be paid for interests.

This means that within a year the state debt of Hungary has increased by 11 pc, it reaches now HUF 11 321 billion. Elemér Terták, administrative state secretary of the Ministry yesterday recognized this year three billion euro foreign sources should be obtained instead of last year’s two billion euros. The recent prognosis of the ministry forecasts a 59 pc state debt for this year which is alarmingly close to the 60 pc limit set by the European Union. 75 pc of the total debt is in forints. Hungary will take a loan of 170 million euros from the Development Bank of the Council of Europe for a long-range regulation of waterways. The agreement about the loan was signed yesterday by Mr Terták and by Raphael Alomar, head of the bank.