Citigroup: Hungarian shortfall could be “tolerable”

Don’t look now, but Hungary’s return to fiscal responsibility continues to earn it support continues apace. Citigroup, which it should be noted is not without its own difficulties, has said that while Hungary may fall short of its attempts to cut the national debt to 3.8% of GDP, the result could prove to be “tolerable.”

The budget deficit may reach 4.5 percent of gross domestic product this year, compared with the government’s 3.8 percent target, Budapest-based Citigroup analyst Eszter Gargyan said in a note to clients today. The “key risk” is the failure of the new Cabinet after April elections to implement an “ambitious reform agenda.” Euro adoption may be delayed to 2015.

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