Hungary prime minister says bank tax cut may be tied to more lending

MBH Jelzalogbank Nyrt

10/04/2015 06:52

BUDAPEST, April 10 (Reuters) - Hungary will cut a special 
financial sector tax next year for banks that increase their 
lending in the country, Prime Minister Viktor Orban told public 
radio in an interview on Friday. 
    Orban's government made an agreement earlier this year with 
the European Bank for Reconstruction and Development and Erste 
Bank  ERST.VI  about cutting the bank tax, one of the highest in 
Europe, but there was no direct reference to conditionality on 
more lending.  ID:nL5N0VJ3P8  
    "We made the agreement that banks will undertake to lend 
more if we decrease their tax burdens, therefore a clause that 
allows for a tax cut for banks that lend more is highly likely 
to be included in the (2016) budget," Orban said. 
 
 (Reporting by Marton Dunai and Gergely Szakacs. Editing by Jane 
Merriman) 
 ((marton.dunai@thomsonreuters.com; +36-1-327-4742; Reuters 
Messaging: marton.dunai.thomsonreuters.com@reuters.net)) 
 
Keywords: HUNGARY BANKS/TAX