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Parliament asks government to examine possibility of introducing personal bankruptcy

Initiatives

Parliament asked the government to examine the possibility of introducing personal bankruptcy protection for borrowers in Hungary by the end of August in a resolution approved earlier this week.

The government has not formed an opinion on the issue, the National Economy Ministry said in a statement in early March, soon after the then draft resolution was submitted by the constitutional and judiciary committee to parliament.

The request regarding personal bankruptcy is part of a parliamentary resolution on various government measures necessary to prevent Hungary's population from accruing massive fx debt, published in the April 3 issue of the official gazette Magyar Közlöny.

The resolution also calls upon the government to introduce basic finance courses in Hungary's public schools, to analyze the effectiveness of measures that it has taken so far to assist borrowers with foreign-currency-denominated loans and initiate their modification if necessary. The government also should consider how a European Commission-proposed directive on home loans can be built into Hungary's legal system.

The parliamentary resolution also asked financial-market regulator PSzÁF to coordinate its operations with state competition authorities more efficiently and specifically conduct a joint investigation on the pricing of retail loans as the rates often rise more than Hungary's risk premium justify.

The resolution stipulates that the government and PSzÁF submit reports on the proposals and tasks outlined above to parliament's Constitutional, Justice and Procedural Committee by August 31, 2012.

The request

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