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Vienna 2.0 initiative important to Hungary, EBRD director says

Vienna 2.0, the new European Bank Coordination Initiative, is of key importance to Hungary as it is about how to prevent the balance sheet correction of major banks leading to declining credit that would impede growth, EBRD Piroska Nagy told MTI in Vienna on Tuesday.

On Monday, high-level public sector officials from host and home countries of major cross-border banks discussed ways to

coordinate national policies affecting the economies of emerging Europe in order to avoid adverse cross-border effects of the emergence of uncoordinated and competing policy responses to the euro zone crisis.

The Hungarian delegation was proactive and represented a joint stand at the Monday meeting, which in itself made a favourable impression, considering earlier frictions, Ms Nagy said.

Ms Nagy noted that OTP is an important international bank, and it has been a full participant of the 2009 Vienna Initiative for long. OTP Bank representatives were present at a Tuesday morning briefing held for banks after the Monday talks, she said.

The EBRD, coordinated the Monday meeting said that they will invite the affected banks for the next meetings.

The next big meeting of the Vienna 2.0 group is expected to be held at the beginning of March, Ms Nagy said.

Hungarian representatives at the Monday meeting included National Bank of Hungary (MNB)vice president Julia Kiraly, National Economy Ministry deputy state secretary Roland Natran and financial watchdog PSZAF managing director Arpad Kiraly.

The MNB, the ministry and PSZAF welcomed Vienna 2.0 as an important and positive step towards the strengthening of the region’s economies in a joint statement issued on Tuesday.