Varga: Borrowers' relief won't break the banks
National Economy Minister Mihály Varga dismissed speculation that the borrowers’ relief package will bring banks to the brinks of bankruptcy, Hungarian business daily Világgazdaság reported today.
"Fears concerning bankruptcy are unfounded," Varga told the paper. He added that lenders had earlier signaled that they would get capital from their parent banks if necessary.
Reflecting on the latest speculation by the central bank that three our four foreign banks might be caused to leave the country, the minister said it was “pointless to speculate” as parent banks expressed their long-term commitment to stay in Hungary.
The borrowers relief law forces banks to compensate mortgage holders who were hurt by fluctuations in the value of the forint, and some have estimated that it will cost the banking inudustry HUF 1 trillion.
Prime Minister Viktor Orbán has said he would like to see fewer foreign owners in the banking sectory, and he was able to advance toward that goal last week, when the Hungarian government agreed to buy MKB Bank from its German parent company.
ADVERTISEMENT
Hungary Trade Surplus at EUR 308 mln in April
Parl't Approves Amendments to Legislation on Judiciary
Gloster Acquires P92 IT Solutions
Ibis Styles Budapest Airport Hotel Wins Best of Budapest & H...
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.
