Gov't Rolls out Deposit Rate Cap for Institutional Investors
Image by Shutterstock.com
Hungary's government will cap interest rates on deposits of financial companies and some private individuals at the three-month discount T-bill rate, Economic Development Minister Márton Nagy said on Monday, according to a report by state news wire MTI.
The cap will apply to bank deposits by investment companies, funds, home savings banks, insurance companies, investment funds, and private individuals with HUF 20 million or more in accounts.
Nagy said some of those parties are using commercial banks as intermediaries to place their money in central bank deposits paying interest as high as 18%, while retail banking clients get just 9-10% on their long-term deposits and under 1pc on sight deposits.
Some institutional investors are "using the situation to make the kind of profit that is unjustified in the current situation", he said.
The deposit rate cap will remain in force until March 31, 2023.
Avg Hourly Pay Rate for Blue-collar Workers Climbs 16% in Q1
Bulgaria's Household Income, Spending Rise 20% in 2023
Job Fair and Career Prep at Corvinus Starts Tomorrow
Spago Budapest Offering Unique Sunday Brunch Experience
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
