The economy minister urges more corporate lending to boost economy

Budapest, June 2 (MTI) – Banks need to increase their corporate loan portfolios to ensure more development and more new jobs, Mihaly Varga, the economy minister, told public television M1 on Tuesday evening.

Banks that increase their corporate lending activities will be refunded a total 10 billion forints from their tax payments in 2016, the minister said.

On another subject, Varga said that there was further room for the central bank to cut its base rate, which could be reduced to 1.3-1.2 percent.

Concerning opposition change proposals to next year’s budget, the minister said that if parliament passed those proposals central revenues would be decreased by several hundred billion forints.

Varga also said that financing Hungary’s debt was getting easier from year to year. He noted that the state debt had been reduced to 76.9 percent of GDP last year, and in 2016 some 72-75 billion forints less will need to be spent on renewal.

Photo: MTI

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