New Austerity Package in Hungary

Politics ♦ Published: October 5, 2012; 19:53 ♦ (Vindobona)

In order to cut the budget defict below 3.0% of GDP in 2013, the Hungarian government plans further cuts and tax increases.

New Austerity Package in Hungary / Picture: ©

Hungary needs a new loan of IMF urgently. The negotiations were postponed and interrupted several times. The loan would have an interest rate of 2.5%, which is substantially lower than the interest rate on sovereign bonds. In the last months, IMF criticized Hungary´s economic forecasts and austerity targets.

At the moment, the country´s public debt quota is at 79%. Although,…