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Government in Talks With Banks Over New Reference Rate for Corporate Loans: RTRS

HUNGARY
  • Hungary's government is talking to local banks on ways to boost corporate lending, the ministry told Reuters in an emailed reply to questions.
  • Yesterday, Bloomberg reported that two officials at the ministry proposed switching the main rate used by commercial banks to determine the interest charged on loans, which are typically levied by adding a margin to the Bubor interbank rate.
  • The comments are the latest of a series of verbal interventions from government officials over monetary policy. Last week, Prime Minister Orban urged the central bank to priortise growth and to lower interest rates.

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