The government is continuing talks with the Hungarian Banking Association, government spokesman Andras Giro-Szasz said on Wednesday.

The sides have met twice so far, Mr Giro-Szasz said. At the first meeting, banks presented their concept for an agreement and the government presented its draft agreements at the second meeting, he added.

The sides’ conceptions for the agreement cover government securities, supporting SMEs through lending, supplying credit for the self-financing part of European Union-supported investments, and home creation, he said.

Reacting to press reports the association said on Tuesday that banks will not break off the talks with the government on a support package for troubled borrowers with foreign currency-denominated loans.

Daily Magyar Nemzet reported on Tuesday that the banking association could end the negotiations with the government because of a broken promise to refrain from introducing any further support measures for forex borrowers until an agreement with the sector is reached.