Hungarian Economy Minister Mihály Varga does not believe it necessary to introduce new measures for addressing the plight of forex debtors, but he intends to extend and fine-tune those already in place.
The new leadership of the Ministry for National Economy considers stability, predictability and increasing confidence the cornerstones of its policy. The key priority of the Ministry, according to the Minister, is to reignite economic growth. As he said, it was a “great joy to see” that Hungarian economic stakeholders are characterised by cautious optimism nowadays, which is a good starting point for talks on the future with company directors.
It will been crucial for boosting growth that banks which operate in Hungary act as partners and increase lending in order to stimulate investments. He stressed: “I am not saying that the banking system is the only tool for reinvigorating the Hungarian economy, but it certainly is one of the key tools". He also added that negotiations with credit institutions launched in February by the former ministerial leadership will continue.
Increasing the current corporate loan portfolio of HUF 7,000 billion by 1 per cent would add 0.5 per cent to GDP, he said. When asked about cooperation with the central bank, his response was that the Ministry has been planning a strategic partnership based on “common objectives”. As he said, it is a great advantage that National Bank President György Matolcsy was a member of the Government in recent years and is aware of the Government’s economic policy goals.
Concerning the Excessive Deficit Procedure against Hungary, Mihály Varga reiterated his former position that he does not believe it necessary, for the time being, to amend the state budget.
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