"The year 2009 has barely started, and Hungary's fiscal problems are already in the headlines. The reason: Government coffers are likely to lose HUF 200 billion of anticipated revenues, a massive amount that budget reserves will not be able to compensate.The International Monetary Fund is not amused, and Hungary may be forced to adopt new austerity measures in order to maintain access to the emergency funds secured in October - or else run the risk of a major currency crisis and national bankruptcy, news portal Index reported.
Hungary's 2009 budget is in trouble, as it is already visible that revenues may be HUF 200 billion lower than expected, partly due to exaggerated inflation forecasts, and partly to hefty government compensation for state employees who lost their “13th month" bonus at the end of 2008.
The International Monetary Fund is finding the latter particularly irksome, the main reason for tomorrow's official visit of IMF Managing Director Dominique Strauss-Kahn to Budapest tomorrow, market sources told Portfolio.hu on condition of anonymity.
Strauss-Kahn is meeting Prime Minister Ferenc Gyurcsány, Finance Minister János Veres and National Bank of Hungary Governor András Simor, President of opposition party Fidesz Viktor Orbán, and a number of MPs, the IMF said. "
Source: Portfolio Online Financial Journal
14.01.2009