Economy Minister: Hungarian-Russian economic committee should discuss Russia embargo

(MTI) – A meeting of the Hungarian-Russian economic mixed committee should be called to discuss how Hungarian-Russian economic relations could be kept alive, Economy Minister Mihaly Varga said on Tuesday.

Varga said a proposal to expand direct EU subsidies in order to offset the effects of Russian embargos should be raised at the next meeting of EU finance ministers. The European Commission has announced that it would extend subsidies worth 125 million euros to farmers whose produce expire.

Talking to commercial HirTV, Varga noted that a Russian import ban causes Hungary’s agriculture losses worth a daily 70 million forints (EUR 223,000). Hungary also suffers losses in production, construction and other industries, and it needs compensation.

If Russia puts out a ban on car imports, too, this would hurt Hungarian industry indirectly, through the German vehicle market, he said.

On the subject of foreign currency loans, Varga said banks are expected to form reserves worth 900 billion forints in response to losses expected on the back of the government’s debt relief measures. The details of these will be worked out in legislation to be submitted to parliament in the autumn, he said, adding that the functioning of the banking system will not be compromised.

Photo: MTI – Lajos Soós

Source: http://mtva.hu/hu/hungary-matters