The cabinet also decided to allow the 115 local governments that had not piled up debt in previous years to apply for Ft 10 billion in development funding, Lázár said.

Last year the government assumed the debts of local governments, a measure regarded as unfair by municipalities that ran surpluses.

Lázár also said the government supports the MNB’s proposal to raise the compensation for customers of bankrupt brokerages from the present €20,000 to €100,000.

If the legislation can be applied retroactively, and if it stands legally, then nearly all of the 32,000 customers of the failed brokerage Quaestor could get their money back, the minister said.

Source: Hungary Around the Clock

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