Demand for credit has grown, economy minister tells Euromoney conference
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Vienna, January 19 (MTI) – The government’s family home-building scheme has triggered higher demand for credit and this in turn is vitalising the Hungarian economy, Mihaly Varga, the economy minister, told a Euromoney conference in Vienna on Tuesday.
The government supports accelerating lending while reducing administrative burdens, he said.
In light of a deal with the European Bank of Reconstruction and Development, this year the government would sell its stakes in MKB bank and Budapest Bank, in addition to acquiring a 15 percent stake in Erste Bank.
After the conference, Varga consulted with Erste chiefs. He said the valuation of the Hungarian unit’s portfolio had been completed and now all that remains is to agree on a price of the transaction.
He said the EBRD deal reached last year was a “milestone” since this had led to a reduction in the bank levy from Jan. 1 this year.