STATE DEBT INCREASING

The state debt of Hungary has increased by HUF 176 billion in a month so each Hungarian citizen is indebted now with HUF 1.3 million. Fidesz claims Hungary has come to the brink of a debt trap though the Ministry of Finance reports the indebtedness has increased only slightly. Zsigmond Járai, President of the Central Bank said the net external debts of the state have increased from 2.4 billion euros in 2001 to 14 billion euros in the first half of this year, reaching the level of 1995. He reminded of the fact that the state deficit of Hungary (without the pension reform) had already surpassed the 60 pc ceiling.

Translated by Péter Szentmihályi Szabó