Let Debt Loose and Get ‘Hanged’ in Market, Orban Warns

(Bloomberg) --

Hungary must keep its indebtedness firmly under control while providing stimulus during the virus crisis as otherwise it risks exposing itself to speculative attacks in the market, Prime Minister Viktor Orban said.

The deficit limit of 3% of gross domestic product is a “red line” and anyone abandoning fiscal discipline will later face being “hanged” on a rope pulled by “speculators” hunting for those too exposed, Orban told state radio Friday.

Orban said he was less upbeat than the Hungarian central bank, which still sees a chance for 2%-3% economic growth for this year. At the same time, the country can emerge from the crisis without a massive collapse, Orban added, without providing a specific growth forecast.

READ: Finance minister’s comments on economic outlook

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