Path: news.cs.columbia.edu!newsmaster.cc.columbia.edu!flute.clari.net!soprano.clari.net!clarinews
X-Fn: bz/Qhungary-economy.RGNb_9FF
Distribution: cl-3,cl-edu,cl-4,cl-corp,cl-be
X-No-Archive: yes
From: C-afp@clari.net (AFP)
Newsgroups: clari.world.europe.central
Subject: Outflow of profits puts Hungarian current account in deficit
Organization: Copyright 1999 by Agence France-Presse (via ClariNet)
Message-ID: <Qhungary-economyURGNb_9FF@clari.net>
Lines: 28
Date: Mon, 15 Feb 1999 9:22:40 PST
ACategory: financial
Slugword: Hungary-economy
Threadword: hungary
Priority: regular
Approved: e.news@clari.net
Xref: news.cs.columbia.edu clari.world.europe.central:14323

  	  				 
   BUDAPEST, Feb 15 (AFP) - Hungary's bigger-than-expected current  
account deficit has been caused by repatriation of profit by foreign 
companies working here, Economy Minister Attila Chikan said on 
Monday. 
   The deficit last year of 2.264 billion dollars (2.0 billion  
euros), which drew a warning from the Organisation of Economic 
Cooperation and Development (OECD) recently, "is surprising, the 
deficit is much bigger than I had expected", Chikan said. 
   "It is primarily due to the profit repatriation of foreign  
entrprises working here. But this has two sides: we can boast how 
profitable the multinationals settled here are," Chikan said. 
   Plans for 1998 foresee a current account deficit of two billion  
dollars (1.76 billion euros). 
   Last year, 1,884 million dollar's worth of net income left the  
country, or about 10 percent of the total amount of foreign 
investment here. 
   "Of course we would have been better off if this money had also  
been invested here, but this is not the beginning of a crime story," 
Chikan told the Nepszabadsag daily newspaper. 
   "The good thing is just that, that foreigners can freely dispose  
of their money here anytime," he said. 
   Chikan said Hungary would not introduce import restrictions, and  
would not take special moves to spur exports either in order to 
improve the balance. "But I expect that economic growth in western 
Europe would have a favourable effect on our exports," he added. 
  	   	

