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MNB regulatory proposals augment those of government

National Bank of Hungary (MNB) Governor András Simor said on a radio program at the weekend that the MNB's proposals aimed at increased regulation of foreign-currency-denominated loans in Hungary serve to promote the government's objective of imposing a greater degree of financial oversight in the country.

Simor remarked during the program that Hungary's inflation outlook and international assessment are the two main factors that the MNB evaluates when making rate-decisions, noting that the latter consideration has recently outweighed the former.

“Unfortunately we have not been able to cut the key-interest rate to the degree warranted during a ‘normal recession,’” the MNB governor said.

Responding to a question regarding Hungary's entry into the European Exchange Rate Mechanism (ERM II), which is necessary prior to adoption of the single European currency, Simor commented that the process of euro convergence is a lengthy one and should be initiated by a government that can carry it through to the end.

The MNB governor said he supports the notion of compiling a positive borrowers' list, noting, however, that parliament's data-protection ombudsman has always opposed such a move. (MTI-ECONEWS)