"The gross state debt and net external debt levels of the Hungarian economy are extremely close to those critical levels over which they definitely impair potential (economic) growth," Julia Kiraly told a business conference organised by Portfolio.hu on Thursday.

She said even at the 1.5 percent economic growth rate that is now considered realistic for Hungary, it would require a primary budgetary surplus worth 3-4 percent of economic output just to keep state debt steady at 80 percent of GDP.

Copyright Reuters, 2012