National Economy Minister György Matolcsy told a parliamentary committee on Monday that earlier finance ministers and the central bank should have taken protective measures when foreign currency-based lending became widespread after 2003.
Matolcsy said the National Bank of Hungary should have adjusted its international reserves to the growing stock of foreign currency-denominated loans after 2003. If the central bank had topped up its reserves with more Swiss francs — once the base for the most popular retail lending products in Hungary — it would now be able to intervene, he said.
The finance ministers should have told banks to set aside risk provisions for their foreign currency-based loans, and required borrowers with such loans to take out exchange rate insurance, he added.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
