2012.12.29. 22:50
Fiscal Council chief expects slow decline in public debt
Budapest, December 28 (MTI) - Hungary s public debt-to-GDP ratio will slowly decline if the country keeps its budget deficit at 2.8 percent of gross domestic product even in the longer term, Arpad Kovacs, head of the Fiscal Council, told MTI.
Budapest, December 28 (MTI) - Hungary s public debt-to-GDP ratio will slowly decline if the country keeps its budget deficit at 2.8 percent of gross domestic product even in the longer term, Arpad Kovacs, head of the Fiscal Council, told MTI.
Kovacs noted that Hungary s public debt stood at a much higher level than that of several similar Central and Eastern European nations.
Among the conditions of reducing it, he mentioned the start of sustainable economic growth, the favourable money market atmosphere and a long-term decline in spreads, interests and the yields of government securities.
"Once all these conditions are in place and efforts to boost economic growth are in line with fiscal stability, Hungary will be able reduce its public debt to below 60 percent of GDP in 10-15 years," Kovacs said.
