Situation Of Hungarian Banks Touchy Topic In Austria
- 3 Feb 2014 3:00 AM
The situation of Hungarian banks is a sensitive issue in Austria, Ewald Nowotny, the governor of the country’s central bank, said in an interview in business daily Napi Gazdaság. Speaking about a possible withdrawal of Austrian banks from Hungary, Nowotny said it was in the interest of both sides to avoid taking hasty decisions and to think long term.
But he noted that Hungarian banks had been forced to write down big losses. Considering how long they are prepared to operate on a market where they are not generating profit is an absolutely rational question of doing business, he added.
“I hope that there is no pressure on Austrian banks to massively scale back their Hungarian units. In any case, they have to consider which banking activities are worth undertaking on the Hungarian market in the long term,” Nowotny said.
Source www.hungarymatters.hu
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