Thanks to the Family Housing Allowance (CSOK), demand for residential properties and loans is expected to rise, Minister for National Economy Mihály Varga said at a conference on the future of Central and Eastern European countries, organized by financial periodical Euromoney in Vienna. Speaking of the Government’s measures aimed at boosting lending, the Minister said that the Government was planning to reduce administrative burdens in this field.
At a panel discussion with two colleagues, Finance Ministers Hans Jörg Schelling from Austria and Anca Dragu from Romania, Mihály Varga noted that Hungary has been bolstering bank lending by several measures. He called the MoU concluded last year with the EBRD a major milestone, because as a result of that the bank tax has changed favourably for banks as of 1 January 2016. The state of Hungary is about to purchase through the Hungarian National Asset Management Inc. another 10 thousand residential properties, the owners of which have been in arrears. Thus, the number of properties which had weighed down banks’ balance sheets but have been bought up by the state will increase to 35 thousand.
The Minister pointed out that in accordance with the terms of the MoU with the EBRD, in 2016 the state is going to offload ownership in MKB and Budapest Bank, and finalize the purchasing of a 15 percent stake in Erste Bank Hungary. With regard to this latter issue, the Minister held negotiations with Erste Bank representatives after the conference. As he said, the bank’s portfolio analysis had been finished and talks were focusing on the transaction price.
Responding to questions on the visit to China by the CEO of Hungary’s Debt Management Agency (AKK) and a Deputy State Secretary for the Ministry for National Economy, the Minister said that through the issuance of renminbi-bonds the Government aims to broaden Hungary’s investor base. The timing of auction and the issuance volume are to be decided upon at a later date, depending on market conditions, he added.
(Ministry for National Economy)
