Interviewed by commercial news channel Hír TV, Varga said that banks should calculate precisely the damage caused to their clients by unilaterally modifying loan contracts and reach a fair settlement with them.

The EC said in a report published on Tuesday that Hungary was likely to need further fiscal consolidation efforts to avoid the re-opening of an excessive deficit procedure, due to the slow pace of the country’s debt reduction.

The minister called the report “biased and containing several subjective elements”.

He noted, however, that the commission acknowledged the recent pickup in economic growth, and Hungary’s achievement in keeping its deficit below 3% of GDP. Varga reaffirmed the government’s commitment to the measures that produced these achievements over the past year.

For instance, it does not accept the commission’s proposal to reduce the tax benefits of low-income people or phase out special taxes, he said.

Source www.hungarymatters.hu

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