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Experts from govt, bank association debate APR cap

Experts from the National Economy Ministry and the Hungarian Banking Association discussed the prime minister's proposal to cap annual percentage rates (APR) at 30% at a meeting of Parliament's Economy and IT Committee on Monday.

Deputy state secretary Roland Nátrán said a higher APR cap for some products was conceivable.

The higher risk to lenders of consumer loans justifies APRs over 30%, said Hungarian Banking Association chief secretary Levente Kovács. He suggested allowing a 45% APR for credit card loans, short-term personal loans and consumer credit.