Fidesz group leader excludes local government debt consolidation

Sights

Janos Lazar, head of the parliamentary group of the ruling Fidesz party and mayor of central Hungary's Hodmezovasarhely, excluded the possibility of an "unconditional" consolidation of local government debt, in an interview published in daily Nepszabadsag on Saturday.

Instead,  Lazar urged debt-burdened municipalities to seek individual solutions and negotiate with banks to reschedule repayments, just as his own city had done.

Lazar said there would be unforeseeable consequences if the state took over sources of operating income from local councils, but he conceded the financing mechanism for local councils needed to be restructured.

Municipalities last week urged the government to mediate with banks to achieve a moratorium on principal repayment on their foreign currency-denominated loans. About 85% of outstanding municipal bonds are denominated in foreign currency, mainly in the Swiss franc, which has firmed markedly since their issue.

ADVERTISEMENT

More Romanians at poverty risk since the COVID pandemic Analysis

More Romanians at poverty risk since the COVID pandemic

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.