Government: EBRD deal signals new fiscal policy

Budapest, February 12 (MTI) – The government’s recent signing of an agreement with the European Bank for Reconstruction and Development (EBRD) marks the beginning of a new era in Hungary’s fiscal policy, cabinet state secretary Andras Giro-Szasz told MTI on Thursday.

Giro-Szasz said that the government had stabilised the Hungarian economy and resolved the problem of troubled forex debtors, which created an opportunity to reduce the sectoral tax on banks.

“Having resolved issues in those areas has also opened an opportunity for the government to start a new chapter based on financial and social stability, of which the EBRD agreement is an important and symbolic step,” Giro-Szasz said.

Prime Minister Viktor Orban announced on February 9 that the Hungarian state and EBRD will acquire a stake in Erste Bank Hungary. He also said that the government will significantly reduce the sectoral tax on banks in 2016-17, with further reductions to follow in 2018.

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