Hungarian Banking System Is Strong, Says Finance Minister

The Finance Minister spoke in Cluj-Napoca (Kolozsvár, Romania) on the state and future of the Hungarian economy and banking system. Mihály Varga stressed that this year is about avoiding recession, while next year Hungarian GDP could grow by around four percent, Világgazdaság reported.

The Hungarian banking system is strong and viable even in a deteriorating international environment, as confirmed by the latest ratings by credit rating agencies, Mihály Varga stated in Cluj-Napoca. He said that thanks to its performance over the past decades, the Hungarian economy has become more resilient to the crisis, growing by 4.6 percent last year, avoiding recession this year, and expected to grow again at around four percent next year.

Mihály Varga also pointed out that

Hungary remains in the investment grade category of all three major credit rating agencies: this year, Fitch, Standard & Poor’s and Moody’s have already rated the country’s economy.

According to the finance minister, Hungarian credit institutions have healthy credit and balance sheet data, their capital adequacy ratio is one and a half times that of 2008, and their liquidity buffers are well above the required level. He also stressed that the government’s commitment to improving balance sheet ratios is a factor of stability.

Outlining the economic achievements of the past period, the finance minister said that last year, despite the election, the war and sanctions, the budget deficit and the public debt ratio were reduced, with the latter at a faster pace than expected, from 76.8 to 72.9 percent. Finally, he underlined that the government plans to reduce the budget deficit to 3.9 percent this year and 2.5 percent next year, while the public debt ratio is planned to be brought below 70 percent, allowing economic growth to continue at around four percent with improving balance indicators.

Featured photo via Facebook/Mihály Varga