Hungary's PM Orbán Says Bank Tax Won’t Cause Harm

  • 19 Oct 2012 9:04 AM
Hungary's PM Orbán Says Bank Tax Won’t Cause Harm
The cabinet’s decision not to cut the bank tax in half next year as promised will not harm the Hungarian economy, Prime Minister Viktor Orbán said Thursday. Speaking to Bloomberg news in Bucharest, he said banks have already stopped lending and a deleveraging process is underway. The tax on banks will have no effect on economic activity, he added.

Orbán repeated his comment of last Friday to the effect that an agreement with the IMF and the EU is close. He stressed that Hungary needs only a precautionary line of credit, not a loan,

He acknowledged differences of views with the EU as regards the budget, but said these can be managed.

Fidesz caucus leader Antal Rogán echoed Orbán’s comments on TV2 yesterday, saying the government can not help but keep the bank tax high, which is not a positive thing, but is not going to cause much damage to the economy.

Banks have not been lending in the past two years, and this is not going to change, he added. With the fiscal measures announced, it is not peoples’ income that will shrink but banks’ profits, Rogán asserted.

Source: Hungary Around the Clock

This news item is one of many published daily by HATC, a premier subscription news service which distributes English-language info about Hungary via email or fax. For a free trial of HATC follow this link and click on 'Free Trial Subscription'.

  • How does this content make you feel?