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Central bank governor asks for meeting with PM

The National Bank of Hungary (NBH) on Monday said governor Andras Simor asked for a meeting with Prime Minister Viktor Orban to present the central bank's proposals on reducing the burden for borrowers.

"The proposals drawn up by the central bank aim to significantly reduce the burden for borrowers while at the same time guarding the long-term stability of the financial system and reducing system-level risks," the bank said. "The proposals were drawn up by the NBH's experts to ease the burden of retail borrowers and within this group that of borrowers with foreign currency-denominated loans," it added. 

Mr Simor also wants to inform the prime minister of the central bank's assessment of the global economic situation and defining macroeconomic trends in the domestic economy, it added.

The NBH has pointed out on a regular basis since 2001 the risks of taking out loans denominated in foreign currency and has made proposals for managing such risk, the bank said. The central bank has also noted in a number of forums that it lacks the necessary macro-prudential regulatory tools to effectively manage such risk, it added.