Published: March 24 2023
Summary: The Hungarian government is providing companies with very low-interest loans numbering in the billions, while banks are taking significant profits by offering the large deposits very high-interest rates. These banks are known to receive payments from the National Bank of Hungary, which is ultimately funded by taxpayers. Some of the companies are taking advantage of this opportunity and cashing in on their creditworthiness, causing taxpayers to foot the bill for the profits they make. Additionally, when high reference rates translate to high interest rates on businesses, this means that the bank and National Bank of Hungary suffers losses at taxpayers' expense.
Key points:
- The Hungarian goverment is backing loans with very low interest rates.
- Banks are profiting by offering these companies high-interest rates on their large deposits, and the National Bank of Hungary ultimately foots the bill with taxpayers' money.
- Some companies are exploiting this opportunity to rake in profits at the taxpayers' expense.
- The Hungarian government is criticising banks and the central bank for the drop in market interest rates, especially among SMEs.
Source article:
This summary was created using AI, so there may be some inaccuracies. Always check the original linked article to be sure.
