UPDATE 1-Hungary firms' funds to help hit budget goal-econmin

Published 10/01/2010, 10:33 AM
Updated 10/01/2010, 10:36 AM

* Govt may need additional resources to meet budget goal

* MOL stock falls on fears govt would impose new energy tax

* MOL says has already paid HUF 35.8 bln in mining fees

(Adds MOL, fresh comments)

BRUSSELS/BUDAPEST, Oct 1 (Reuters) - Hungary may need funds from the corporate sector, including flagship energy firm MOL, to help it meet this year's budget deficit goal, Economy Minister Gyorgy Matolcsy said.

Hungary is on track for the 2010 deficit target of 3.8 percent of GDP, and to reduce the gap to below three percent next year, he told reporters on Friday.

But to meet the 2010 target it would need a one-off payment from MOL, some advance payments from state-owned companies and proceeds from extra sales of CO2 permits, Matolcsy said.

It was not immediately clear whether Matolcsy was referring to mining fees, which MOL had already paid into the budget, or some kind of a new levy.

The economy ministry was not immediately available for comment.

MOL told Reuters it had paid 35.8 billion forints ($176.7 million) in mining fees to the state based on an earlier ruling from European Union competition regulators.

"MOL has built provisions for the full amount in the second quarter... and it transferred the amount to the Hungarian government in the past few days," MOL communications chief Dora Somlyai said.

MOL's share price fell immediately after the minister's comments but by 1330 GMT had recovered most of the losses, trading 0.6 percent lower at 21,170 forints.

Matolcsy said the extra corporate funds would come on top of a banking levy that has been used to fill the budget shortfall.

"As for the black hole in the budget, the overwhelming majority will be covered by the financial levy," Matolcsy said. "However, we might need some additional resources -- 35 billion forints ($172.8 million) from MOL and some additional advance payments from state companies."

Local media had reported earlier that the government was mulling the introduction of a special tax on telecoms and energy firms to boost budget revenues as it struggles to meet the deficit targets this year and next.

Matolcsy, who spoke after a meeting of EU finance ministers in Brussels, added that during his trip this month to the International Monetary Fund (IMF) assembly he would not discuss any new credits for Hungary.

(additional reporting by Sandor Peto in Budapest)

(Reporting by Marcin Grajewski; Editing by David Brunnstrom, John Stonestreet)

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