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.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
