Varga: Banking tax stays, could be lowered
Although Hungary introduced the extraordinary bank levy as a temporary measure for three years in 2010, it became permanent in 2013 and is expected to be maintained, but at a lower rate, Economy Minister Mihály Varga said, according to today's edition of Hungarian business daily Napi Gazdaság.
Ongoing talks are taking place between the ministry and the banking association, Varga said, adding that the current economic growth has been reached at a low level of lending. The minister also told the paper that if ratings agencies assess Hungary's performance in an objective manner, the country would currently deserve an upgrade.
"If we can help (boost lending), the economy could be moved to a higher growth path than what is targeted for this year. As the government and the financial institutions have shared interests, if we can find the point where commercial banks' lending can be encouraged through a correction of the banking tax, I believe that such an agreement can be reached soon," Varga added.
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