Hungary needs fresh capital, corporate loans, expanding markets to grow - Matolcsy

Initiatives

Hungary's economy needs fresh capital, credit for businesses and expanding markets to keep it from slowing to the level of stagnation, National Economy Minister György Matolcsy said late Friday.

Hungary kept itself from default in the second half of 2010, and this year a renewal and restructuring were launched that could make Hungary more successful within a few years, Matolcsy said, speaking after a conference. Hungary must still face new sources of danger, such as the crisis in the eurozone, he added.

The Hungarian economy is no longer vulnerable because of the budget or state debt, but growth is in danger, he said.

The government's early foreign currency-denominated mortgage repayment scheme could bring 150,00-200,000 people out of the trap of debt, which is a key for economic growth, Matolcsy said. A new home creation system has also been launched and could produce results along the lines of a similar program started in 2000, he added.

Home construction more than doubled under the earlier program, and the new program is expected to do the same in a few years, he said.

Programs have started that make better use of European Union development programs and that compensate for resources "sucked out" by banks, he said. The government is working on a new lending system as "the parents of foreign-owned banks have sucked out several thousand billion forints, and that money has to be replaced", he added.

The change-over to the proportional 16% flat-rate tax system will be complete over three years, Matolcsy said.

ADVERTISEMENT

Business, consumer confidence improves - Századvég Analysis

Business, consumer confidence improves - Századvég

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.