National Deposit Insurance Funds pays out HUF 90 bln this year

Telco

Not sharp!

Hungary's National Deposit Insurance Fund (OBA) has paid out almost HUF 90 bln to the clients of three failed savings cooperatives this year, up from HUF 76.6 bln in 2013, Hungarian business daily Világgazdaság reported today.

In the event that another bank goes bankrupt and OBA runs out of money, the law allows OBA to borrow to compensate depositors, the paper said.

In this case, OBA would first turn to the National Bank of Hungary for credit, the fund's communications director told the paper. The amount would have to be repaid within three months, thus OBA would tap the market for credit.

At present, lenders pay 1% of the total deposits covered by OBA (which equals to €100,000 per depositor), but the rate may be raised to 2% or 3%, according to the law.

Deposits covered by OBA at the end of last year came to HUF 8,753 bln.

ADVERTISEMENT

Pandemic has only moderate impact on big companies Analysis

Pandemic has only moderate impact on big companies

Parl't to vote on groundwork for commercial accommodation ra... Parliament

Parl't to vote on groundwork for commercial accommodation ra...

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest re-launches airport shuttle bus City

Budapest re-launches airport shuttle bus

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.