MNB opinion on plan to make Treasury collector of deposits sent to econ minister

History

The National Bank of Hungary (MNB) has drawn the attention of the economy minister to the eventual consequences of making the Hungarian State Treasury a collector of deposits, MNB Governor András Simor said in response to an Econews question at a press briefing on Tuesday.

The National Economy Ministry must draw up without delay legislation allowing the Hungarian State Treasury to collect deposits according to a government resolution published in the fresh issue of official gazette Magyar Közlöny. The resolution amends a government resolution published last spring on "measures necessary to increase the holding of government securities among households".
In an opinion sent to the economy minister, the MNB has asked him to consider the proposed measure from the standpoint of neutrality of market competition and also to consider the possible effects of the move on lending and GDP growth, Simor said.
"There is no free lunch", if the state soaks off deposits from the banking system, the latter will have less resources to lend, he said when asked to elaborate. The government must consider whether it intends to finance the state from current accounts or from several-year funding, he added.

ADVERTISEMENT

PMI rises to 57 in June Analysis

PMI rises to 57 in June

Lawmakers postpone expanded data provision for tourism secto... Parliament

Lawmakers postpone expanded data provision for tourism secto...

Tihamér Tóth appointed European Court judge Appointments

Tihamér Tóth appointed European Court judge

FINA head thanks Hungary for hosting 2022 worlds City

FINA head thanks Hungary for hosting 2022 worlds

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.