EBRD, Hungarian govʼt to set up working group

History

The European Bank for Reconstruction and Development (EBRD) and the Hungarian authorities have agreed to set up a working group to analyze the impact on the banking sector of a recent amendment to the Judicial Enforcement Act, the organization said on Monday, according to state news agency MTI. 

The EBRD said it is committed to continuing its fruitful cooperation with the Hungarian authorities and institutions such as the National Bank of Hungary (MNB) and the Hungarian Banking Association, and the working group will work to identify ways to mitigate any potential adverse consequences of the amendment, MTI reported.

At the start of March, Hungaryʼs Parliament approved amendments ensuring repossessed homes are offered at their full market value during the first year after foreclosure. If a repossessed home remains unsold after one year, the legislation lowers the threshold to 90% of market value. Earlier, repossessed homes could be sold for 70% of market value, the news agency noted.   

The EBRD noted that the Hungarian government signed a Memorandum of Understanding in February 2015 aimed at strengthening the countryʼs financial sector, improving its level of efficiency and profitability as well as boosting lending.   

Under the memorandum, the government pledged to "promote a stable and predictable framework to support macroeconomic stability." The successful implementation of the memorandum had positive impacts on the development of the economy and strengthened the local banking sector, the EBRD added.

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.