Bank Tax In Hungary To Remain In Place Next Year
- 1 Oct 2014 9:00 AM
Conversion from forex debt into forint loans, planned for the first quarter or first half of next year, will concern only residential and free-purpose forex household mortgage loans, while the special bank tax will remain intact next year, Gábor Orbán, state secretary at the economy ministry, told participants of a Reuters conference on CEE investments in Budapest.
The official said the government has not yet decided whether to convert forex debts at market exchange rate or below, but it should be taken into consideration that an under-market-rate conversion would present risks to financial stability.
The state secretary expected financial institutions operating in Hungary to have a clearer view of their situation after the settlement of refunds to household borrowers, the debt conversion and the planned establishment of a “bad bank” are over.
Banks cannot yet make up their minds on whether to leave Hungary or stay put, but if a foreign bank decides to leave, “the government will be there to pick up the threads”, he said.
Source www.hungarymatters.hu
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