Hungary: New Threats for Banks

Politics ♦ Published: November 5, 2012; 16:20 ♦ (Vindobona)

The Hungarian government plans to take over debts from small municipalities. Banks fear that the Hungarian state demands a debt relief.

Hungary: New Threats for Banks / Picture: © Vindobona.org

The Hungarian government wants to take over debts of municipalities with less than 5,000 inhabitants. Already at the end of October, Prime Minister Viktor Orban emphasized to relief municipalities. In total, the debt volume reaches about € 2.2bn. More than 1,950 municipalities are concerned. According to the government, the state would be in a better position to re-negotiate the…