“Aggressive incentives” are being considered in informal talks with banks to help SMEs, Pleschinger added. A 1% increase in banks total assets can add 0.2-0.3% to GDP growth, Pleschinger said. In turn, he continued, 40-45% of this additional growth will be collected by the state.

This additional budget revenue would cover the drop in the bank tax, he argued. The news drove the OTP share price up 2.5% yesterday to Ft 4,877.

Source: Hungary Around the Clock

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