Are you sure?

Gov't to expand jurisdiction of finance watchdog

The Hungarian government will submit a proposed amendment to Parliament that would expand the sphere of influence of financial market regulator PSzÁF by the end of this year, Prime Minister Ferenc Gyurcsány said.

The amendment aims to give PSzÁF the tools necessary to better handle financial system risk and protect the interest of depositors in the future, Gyurcsány said.

Gyurcsány noted that a law approved by Parliament by a big majority on Monday allows the government to provide banks with guarantees and even capital injections in order to establish more security in the financial system and allow borrowers cheaper credit.

Banks that take advantage of the capital injections will not get “free money,” but will have to pay interest. A representative of the state will also provide oversight, for a time, at these banks, he added. (MTI – Econews)