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Central Bank Governor Hails MNB’s Role In Hungary’s Economic Recovery

By Tamás Székely // 2015.05.30.

Hungary has successfully concluded crisis management efforts in the 2010-2015 period, György Matolcsy, the governor of Hungary’s central bank (MNB), said on Friday at a conference marking the fifth anniversary of the current Hungarian government. Praising the cabinet’s achievements, Matolcsy said that its stabilisation efforts proved to be more successful than any previous attempts.

Referring to a shrinking public debt, a budget deficit below 3%, and improving employment figures, Matolcsy  said  that  the  country was  successful  in light of all its macroeconomic indicators. “We have found our own way, a Hungarian model,” he insisted. Matolcsy said the National Bank of Hungary had significantly  contributed to economic growth through converting foreign currency denominated loans to forint-based ones and through its credit for growth programme.

However, the central bank is likely to start reducing the scale of its lending for growth scheme from next year. MNB’s managing director Márton Nagy told the press last week that the scheme would have to be gradually wound down. Ninety per cent of Hungarian banks have  signalled that they want to expand their lending activity, he said, innsisting that increasing normal commercial lending activity is the “missing link” in Hungary’s financial system.

via and MTI photo: Imre Földi – MTI