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Hungary econ min sees eventual deal with lenders

Published 07/19/2010, 06:32 AM

BUDAPEST, July 19 (Reuters) - Hungary's government expects to reach agreement eventually with the International Monetary Fund and the European Union and to resume talks with the international lenders in September, Economy Minister Gyorgy Matolcsy said on Monday.

The country will also have a budget deficit below 3 percent of GDP next year, he said in an interview with business TV channel CNBC.

"The talks (at the weekend) didn't collapse, we ended one stage of our talks," Matolcsy told CNBC, according to a video of the interview posted on the broadcaster's website.

"They don't like (the bank levy) but let me just say that we have to do that because this is the very means that will result in a sustainable budget deficit figure," he said. "Out of the 27 EU member countries there are only three countries ... where the budget deficit figure will be below 3 percent," Matolcsy said.

"In Hungary this year we'll have a 3.8 percent deficit figure and for next year we'll have a deficit figure below 3 percent so we'll be in the vanguard, in the first and best group of the EU."

The latest review of Hungary's 20 billion euro loan deal fizzled out over the weekend.

(Reporting by Krisztina Than and Gergely Szakacs; editing by John Stonestreet)

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