Orbán: Savings coops success ids gov't interest
The government is interested in the success of the country's savings cooperatives, because they "bring stability and peace of mind to at least one segment of the economy", Hungary's Prime Minister Viktor Orbán said yesterday.
The Prime Minister called the decision to "renew" the savings cooperative sector as an "important moment", while he also acknowledged the resulting disputes as well as the "political price" paid for the transaction.
The savings cooperative sector was integrated under a government initiative, beginning in the summer of 2013, with the aim of creating synergy and helping savings cooperatives meet stricter European Union capital adequacy requirements, Hungarian news agency MTI reported.
According to Orbán, the Hungarian government decided to renew the sector because of lessons learnt during the crisis. Regardless of how close international cooperation is, if there is a crisis "everybody rushes home", taking with them financing for lending.
"If Hungary does not have its own system of institutions to give it financial sovereignty, it will remain alone, as it remained alone in the 2008 crisis" Orbán said explaining the decision. "We are more secure now than before the last crisis," he added, noting that more than 50% of the country's banking and financial systems are now in Hungarian hands.
Orbán said the government would do everything in its power to ensure that savings cooperatives who did join the integration can say that cooperating with the government is not just the right and honorable thing to do, but rewarding as well.
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