Parliament approves bill to establish National Building Society

Analysis

(Photo: MTI/Zoltán Máthé)

The Hungarian Parliament approved a bill today to establish the National Building Society (NBS) and to augment the savings of society members through a state subsidy, Hungarian news agency MTI reported today.

MPs vote on establishment of National Buidling Society in Parliament today. (Photo: MTI/Zoltán Máthé)

The proposed bill, which was submitted yesterday by Antal Rogán, the leader of the Prime Minister’s Cabinet Office, through an expedited procedure, would allow the organization to provide services similar to those already offered by home savings banks.

The bill, which was authored by Rogán, will match 30% of contributions made by society members up to HUF 25,000 a month. However, these savings must be used to purchase a new home.

Rogán initially announced plans to establish the NBS in January, based on similar successful models found in the United Kingdom, adding that the organization would complement other measures recently introduced by the government such as the reduction of VAT on the purchase, and to some extent building, of new homes from 27% to 5%, as well as CSOK, a home purchase subsidy for families with children.

Currently, Hungarians who deposits funds into home savings banks for the purchase of new and resale homes also receive a 30% state subsidy, but this support is limited to HUF 72,000 a year.

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