Gov't Extends Deposit Rate Cap Till End-June
Image by Shutterstock.com
Hungary's government has decided to extend a cap on interest rates on deposits of financial companies and some private individuals at the three-month discount T-bill rate until June 30, the Economic Development Ministry said on Wednesday, according to a report by state news wire MTI.
The measure, which applies to bank deposits by investment companies, funds, home savings banks, insurance companies, investment funds, and private individuals with HUF 20 million or more on their accounts, was introduced on November 22 and was set to expire at the end of March.
The ministry noted that some institutional investors had "taken advantage of the situation" and put their money in deposits paying interest as high as the 18% paid on the central bank's O/N deposits at quick tenders.
The three-month discount T-bill benchmark rate stood at 14.83% on Wednesday.
The ministry said the government also decided to prohibit the unrestricted transfer of central bank discount bills.
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.