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Banking association chief could resign if new fiscal measures become law

Hungarian Banking Association chairman Mihály Patai could resign if planned fiscal measures affecting banks announced on Wednesday become law, internet portal origo said late Wednesday, citing a bank chief who asked to remain unnamed.

Industry insiders asked by MTI confirmed the report.

National Economy Minister György Matolcsy announced on Wednesday an additional HUF 367 billion of fiscal adjustments that aim to end the European Union's Excessive Deficit Procedure against Hungary and ensure the country can avail of its full Cohesion Fund allocation. The new measures include the reversal of an earlier decision to halve the bank levy and another to increase the scale of the planned financial transactions duty from 0.1% to 0.2%.

The Hungarian Banking Association said after the announcement that the government had violated cooperation agreements with banks by taking unilateral decisions on fiscal measures affecting the sector.