At a meeting on Wednesday morning National Bank of Hungary (MNB) governor András Simor informed National Economy Minister György Matolcsy in detail of a 10-point proposal prepared by the central bank for the government to ease the burden of borrowers, the MNB said on Wednesday.
The MNB wants the central bank and the government to find a feasible solution to reduce the burden of borrowers and ensure long-term stability, the MNB statement said without revealing the proposals.
A statement by the economy ministry issued earlier on Wednesday said that that Matolcsy and Simor discussed the global economy and domestic macroeconomic developments at the meeting. State secretary in charge of financial affairs András Karman was also present.
The ministry said the consultations covered issues related to the stability of the financial system as well as to retail borrowers, including borrowers of foreign-currency-denominated loans.
Karman heads the home protection monitoring committee, established in August to oversee measures affecting troubled borrowers with home loans.
Simor told Matolcsy that the MNB supports finding solutions which help those in need but do not reduce the inclination of solvent borrowers to make repayments, the MNB said.
The MNB agrees with the need to find a solution with the involvement of banks, but the burdens put on banks must not endanger the long-term stability and operation of the financial system, which is key to the sustainable growth of Hungary’s economy, Simor told Matolcsy, the MNB said.
Simor asked on Monday for a meeting with Prime Minister Viktor Orbán to present the central bank’s proposals on reducing the burden for borrowers. Spokesman for the prime minister Peter Szíjjártó said later on the same day that Orbán had mandated National Economy Minister György Matolcsy to meet with Simor for talks on the proposals.
Last week the Prime Minister said they are working on additional measures to help troubled borrowers and the burden must be shared between borrowers and banks.